Intellectual Property Review

    November 2011
    The government’s proposals to introduce a 10% tax regime for income attributable to the exploitation of patented inventions, whether by way of sale of the patented product or patent licence fees, does not go far enough.

    There is a major problem with the current proposals, which are intended to be introduced into law by April 2013, which has been largely overlooked. The reliefs currently proposed are simply insufficiently generous to materially impact on the behaviour of corporates in relation to their patent strategy.

    That this is the case is readily apparent from even a cursory review of the six worked examples set out at the back of in HM Treasury’s Consultation on the Patent Box, published in June 2011, (and available at http://www.hm-treasury.gov.uk/consult_patent_box_stage2.htm).