Great news in recent budget for motorsport patents in the UK - The Patent Box
23 Mar 2012
‘The Patent Box’ concept will allow UK companies to elect to apply 10 % rate of corporation tax to profits attributable to qualifying patents, whether received separately, as royalties, or embedded in the sales price of products.
The purpose behind the Patent Box is to provide an additional incentive for companies to retain and commercialise existing patents, and to develop new innovative patented products.
It will apply to profits made on or after 1 April 2013.
Profits derived from routine manufacturing, or development functions, and from the exploitation of brand and marketing intangible assets are excluded from the Patent Box, and will remain subject to the normal rate of corporation tax.
The Patent Box will benefit companies which receive patent royalties, sell patented products or use patented processes as part of their business and will typically include companies in the pharmaceuticals, life sciences, manufacturing, electronics and defence industries.
Take advice from your patent advisers right now or contact the MIA for assistance