The following Tax practice note Produced in partnership with Anne Fairpo of Temple Tax Chambers provides comprehensive and up to date legal information covering:
The patent box is an elective regime that provides for an effective 10% rate of corporation tax on worldwide profits attributable to qualifying patents and similar intellectual property (IP) rights.
A company’s profits eligible for relief under the patent box are effectively charged to corporation tax at a lower rate (10%)—see Practice Note: Commencement and phasing in of patent box relief below. The legislation gives effect to this relief by allowing a deduction to be made in calculating the profits of the company’s trade for an accounting period. For more information on the patent box generally, see Practice Note: Patent box—key features of the regime.
It is important to note that the patent box calculation changed for new claims from July 2016, in order to comply with the framework for preferential IP regimes set out in the OECD BEPS project. The pre-1 July 2016 rules are grandfathered and continue to apply for qualifying claimants until 30 June 2021.
Under the grandfathered rules, the calculation of this deduction (and hence the patent box relief) involves six or seven steps, which can be broken into the following three stages:
the first stage (steps 1 to 3) identifies profit by:
starting with TI (total gross income of the trade, which includes revenue receipts and any profits from the realisation of trading intangibles or pre-2002 patent rights but excludes any
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This Practice Note considers the nature and scope of arbitration agreements with a particular focus on arbitration agreements pursuant to the law of England and Wales, although it also discusses the concept from an international perspective and includes some comparative examples from other
This Practice Note considers proprietary estoppel from a generic standpoint.For industry specific guidance on proprietary estoppel, see Practice Notes:•Estoppel and property law•Mortgages by estoppelProprietary estoppel—what is it?Unlike the other forms of estoppel (see Practice Note: Estoppel—what,
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
Part 8 of the Corporation Tax Act 2009 (CTA 2009) is a specific corporation tax regime that applies exclusively to the gains and losses of intangible fixed assets. Note, however, that certain intangible fixed assets are excluded from the regime, see Practice Note: Excluded intangible fixed
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