ARTICLE · 03 JUNE 2013

UK Patent Box Scheme Now Live

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Effective as of 1 April 2013, income derived from patents is entitled to a special reduction in corporation tax.

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Effective as of 1 April 2013, income derived from patents is entitled to a special reduction in corporation tax. In the government's latest Budget it was announced that UK companies will benefit from lower corporation tax rates as the economy recovers - the 23% rate for the 2013-2014 tax year will fall to 21% from April 2014 and then to 20% from April 2015. This will bring the main rate of corporation tax down to the current "small profits" rate to create a simplified regime for all - and the lowest corporate tax rate in the whole G20 group. In addition, electing into the Patent Box will see the corporation tax rate cut to just 10% for qualifying profits that can be linked to a UK or European patent.

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