Member Article

Patent Box relief to benefit innovative firms

Businesses have been urged to find out about financial incentives provided by through Patent Box relief by advisory firm, Deloitte.

Patent Box relief will allow companies to apply a lower 10% rate of corporation tax to profits from April 2013, after the Government pledged £1bn to boost British innovations.

This cash injection will cover tax relief given to businesses with new inventions and innovative concepts in a bid to promote job creation in development, manufacturing and patent exploitation.

Deloitte said many firms are yet to take full advantage of the changes that will come in this year, and encouraged companies to fully explore their options.

Stuart Cottee, head of tax at Deloitte’s Yorkshire and North East office, said: “Patent box will help innovative North East firms compete abroad, attract high quality investment into the region and help keep highly skilled jobs in the UK by making it more attractive for multi-national firms to conduct R&D in the region.

“The introduction of the relief could prove a massive shot in the arm for North East innovative companies but the danger is that firms across the North East fail to appreciate both the value of the relief and the scale of this opportunity.

“While the relief doesn’t start until April firms hoping to qualify should be thinking about putting measures in place now to ensure they satisfy the requirements needed to qualify for the patent box.”

The Patent Box relief has been designed to work alongside R&D relief, and will advantage patent owners across a wide range of sectors.

This was posted in Bdaily's Members' News section by Miranda Dobson .