Bath’s innovative businesses are being urged to act now to reap the benefits of the Government’s proposed Patent Box relief.
Businesses should be reviewing their patents and considering how their activities may be impacted to ensure they are able to use the new relief to their full advantage.
The call comes from experts at PwC’s West office just weeks after an extensive public consultation exercise by HM Revenues and Customs into the new system.
Under the proposals income from patents will be taxed at a reduced rate of 10% as opposed to the forecast headline rate of 23%. The 10% tax rate will be phased in from April 2013 – a move that is ultimately expected to save UK companies around £1bn a year.
Draft legislation to implement the Patent Box is expected to be published by the Government next month (December).
Tracey Bentham, Tax Partner at PwC in the West, said: “The Patent Box is key to making the tax regime competitive for innovative companies and will help to put the UK back on the map as a top location for innovative industries. It will undoubtedly encourage businesses across a wide range of sectors, such as manufacturing and engineering, to invest in the UK, generating growth and creating jobs.
“Given the new regime is intended to apply to income after April 2013 from any new or existing patents granted, businesses should take action now.”
