• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/3/2013

United Kingdom - 90-day patent; interest subject to tonnage tax 

May 3: The UK Intellectual Property Office in April 2013 issued a consultation document requesting comments on its proposed "90-day patent."

A late December 2012 announcement from the Intellectual Property Office revealed that it would introduce a 90-day patent in 2013. Under the new 90-day patent process, in return for a premium processing fee (approximately £3,500-£4,000), the Intellectual Property Office would endeavour to complete the patenting process within 90 days from application to grant. See TaxNewsFlash-Europe: United Kingdom - Proposed “90-day patent” and patent box regime

The Consultation document anticipates legislative changes “at the first available opportunity” (once details of the new process are completed), but does not commit to a definite timetable. Comments are requested by 12 June 2013.

Interest may be subject to tonnage tax

The First Tier Tribunal decided that interest income arising from deposits (cash collateral) required as part of financing arrangements for the acquisition of vessels may be subject to the tonnage tax regime. Euroceanica (UK) Ltd. v. HM Revenue and Customs; TC/2012/03605 (4-6 March 2013)

Read the decision: Euroceanica [PDF 298 KB]

KPMG observation

UK tonnage tax groups need to review whether they have reported such interest outside the tonnage tax regime, and whether they need to amend previously submitted tax returns to reflect the decision. Tax professionals have observed that with this decision, not all investment income will fall within the tonnage tax regime—only income from deposits required to be made (for example) in connection with the acquisition of ships is likely to be accepted as exempt.

Other topics covered in the KPMG report include:

  • Single compliance process trial for SMEs - update
  • Investment trust companies - draft regulations
  • Community investment tax relief - guidance
  • Tax Journal - International Briefing for April
  • Changes to short term business visitors agreement
  • Sleeping and inactive partners - NIC liability
  • Reform of transfer of assets abroad legislation
  • VAT - Remaining VAT grouping infringement cases

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