HM Treasury consults further on the Patent Box and R&D tax credits
The anticipated consultation on the Patent Box was finally published by HM Treasury on 10 June 2011 together with a linked consultation into research and development (R&D) tax credits. Comments on both consultations are invited by 2 September 2011.
Taylor Wessing says
The Government is seeking responses on the workability of the proposals for the Patent Box and the economic and administrative impact of the proposals on businesses. The Government is also seeking views relating to various features of the current R&D tax credits system.
Whilst it is welcome that the Patent Box regime will be optional and will apply to worldwide profits from inventions that have been granted patents by the UK Intellectual Property Office or the European Patent Office and now expressly includes some plant variety rights, supplementary protection certificates and regulatory data protection granted to new pharmaceutical and agrochemical products which cannot be patented, it is disappointing that the regime will be not extended to other forms of IP. Moreover, the application of the regime will introduce significant complexity for businesses that wish to apply the Patent Box.
In addition it is a welcome development that the Government has confirmed its commitment to tax support for R&D investment by UK companies. The Government has listened to a number of the concerns expressed and suggestions made during the previous R&D credits consultation process and has recognised the value of R&D credits to companies undertaking R&D in the UK.
We would encourage high tech companies which could be most affected by the proposals to review the latest consultations and consider providing their comments. The government will have to strike a balance between simplicity, certainty and fairness and this is an opportunity for companies to influence these decisions.
For more information:
Our detailed analysis, HM Treasury consults further on the Patent Box and R&D tax credits
Further consultation on the patent box
Research & Development (R&D) Tax credits: response and further consultation
Lawyers Nikol Davies
