Information on the new patent box tax legislation that came into affect on 6th April

1. Box Up your profits for
significant tax savings
New legislation effective from 1 April 2013
actively encourages companies to save tax. Act
now to ensure you maximise this opportunity.
Following our successful work on Research and
Development Tax Claims, the Baldwins tax
team are now actively helping clients, and non-
clients, to save money and develop their businesses using the PATENT BOX legislation.
Worldwide profits earned by UK companies that are attributable to the exploitation of their
PATENTS will be taxed at only 10% by 2017.
Companies that commercialise patents and develop new innovative patented products and
processes will be eligible for the Patent Box. The company must be actively involved in the
exploitation of a patent granted by the UK or European Patent Office and must either legally
own the patent, hold an exclusive licence to exploit a patent or be in a joint venture,
partnership or cost sharing arrangement.
Income that will qualify includes licensing income, income from the sale of a patent, but most
importantly income from the sales of products incorporating patented technologies.
By allowing all products incorporating patented technologies (one patent being enough to
qualify the product ) to be in the scope of this legislation, PATENT BOX is going to be an
enormous benefit to technology companies!
In addition, patent derived income earned in the period up to four years between application
for an and grant of a patent may be included within the Patent Box in the year when the
patent is granted.
There are of course a number of detailed technical provisions and complex calculations
involved here.
If you think you might be eligible for this relief please contact Baldwins on 0845 894 8966
http://www.baldwinsaccountants.co.uk