Consultations & legislation
Consultation on the Patent Box
Issued: 10 June 2011
Open date: 10 June 2011
Close date: 02 September 2011
Background
The Government is introducing a preferential regime for profits arising from patents, known as a Patent Box. This will allow companies to apply a 10% corporation tax rate to profits attributed to patents.
The Patent Box will encourage companies to locate the high-value jobs and activity associated with the development, manufacture and exploitation of patents in the UK. It will also enhance the competitiveness of the UK tax system for high-tech companies that obtain profits from patents.
The Patent Box was announced in November 2010 as part of the Corporate Tax Road Map, which included a wide-ranging consultation on the taxation of intellectual property. The Patent Box consultation released in June 2011 built on this initial review and provided a detailed explanation of how the Government proposed to implement the Patent Box.
Responses to consultation and further consultation
On 6 December 2011 the Government published its response to the June 2011 consultation. The document includes a summary of the responses received and also includes details of changes to the proposals which have been made as a result of the consultation, and seeks further views on some specific policy proposals.
The Government has also published draft legislation on the Patent Box, together with draft Explanatory Notes and a Technical Note. Technical consultation on the draft legislation and accompanying documents will close on 10 February 2012. Full details on how to contribute to the consultation are set out in the response to consultation document below.
- Patent Box: response to consultation (PDF 338KB)
- The Technical Note (PDF 164KB) (HMRC website, opens in a new browser)
- Draft clauses, explanatory notes, draft statutory instrument and explanatory memorandum (PDF 456K) (HMRC website, opens in a new window)
- The Draft Legislation can be found in the Finance Bill 2012 section of this website
Further engagement
The government held an open event in HM Treasury on the Patent Box on 10 January 2012. Slides from this event can be found below:
If you are not already on the distribution list and would like to be informed of Patent Box updates then please email: corporatetaxreform@hmtreasury.gsi.gov.uk
Related links
- Press notice: Government publishes consultations on Patent Box and R&D credits
- Patent Box: Taxation of innovation and intellectual property consultation
- Find out more about the Corporate Tax reform
Working group
A Working Group of representatives from businesses was established to complement wider consultation on the Patent Box and to discuss options and proposals in more detail. A list of current members is provided below.
- Helen Jones – GlaxoSmithKline
- Mike Sufrin – retired - formerly Rolls-Royce
- Gerd Koenigsmann – Eisai
- Sarah Carter – Syngenta
- Andy Wood – Shell
- Martyn Smith – Dyson
- Michele Nash – Arm
- Peter Denison-Pender – Fusion IP
- Colin Dalton – Vectura
- Valerie Thorn – AND Technology Research Ltd
Contact us
If you would like to share your views on the Patent Box please email corporatetaxreform@hmtreasury.gsi.gov.uk
Post
CT Reform
Corporate Tax Team HM Treasury
Room number, 1 Horse Guards Road
London
SW1A 2HQ
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