2012-11-30 00:00:00 Accounting and Tax English https://djnx69zjp3mvw.cloudfront.net/wp-content/uploads/2017/01/08220246/HMRC-Patent-Box.png Video: Patent Box explained

Video: Patent Box explained

1 min read

 

 

HMRC has launched a new video explaining the Patent Box, a new tax incentive designed to encourage companies, including small businesses, to develop innovative products. 

The Patent Box will allow them to apply a lower rate of Corporation Tax to profits from patented inventions and certain other innovations.

The tax relief will be phased in from 1 April 2013 and the lower rate of Corporation Tax for companies applying will be 10%.

Qualifying businesses are those that make a profit from exploiting patented inventions, and will either own or license-in the patents and will have further developed them.

David Gauke, Exchequer Secretary to the Treasury, said:

“The Government wants to create the most competitive tax system in the G20 and to make the UK the best place in Europe to start, finance and develop a business. The Patent Box is a key initiative to make the UK tax regime competitive for innovative high-tech companies.

“It provides an incentive for them to retain and commercialise existing patents and to develop new, innovative products. Our aim is for this new tax relief to encourage companies to create high-value jobs in the UK and maintain the UK’s position as a world leader in patented technologies.”

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Research Reveals Uncertainty In The Run Up To MTD — But QuickBooks Is Ready To Help

The hottest topic at this year’s Accountex was definitely Making Tax Digital…

Read more

Self-assessment: First timers tell all…

Your first time can be daunting. How are you meant to know…

Read more

Accountant Product Updates – November

With the countdown to Christmas well underway, it’s a hectic time of…

Read more