This Practice Note sets out the UK perspective on various tax issues that should be taken into account in deciding how an innovative IP business with international or global ambition might be structured. The points below are Generic and effectively assume a blank canvas; restructuring an existing IP-Ownership set-up will obviously require a tailored approach (especially in the context of joint ventures or consortia), but the following points will still be likely to need consideration.

As part of the UK's bid to become one of the world's most attractive environments for innovation and Enterprise, several tax benefits are available to incentivise the UK-based development and exploitation of IP, including:

1. •

   R&D tax reliefs

2. •

   the patent box

3. •

   business asset disposal relief (formerly entrepreneurs' relief)

4. •

   amortisation deductions for purchases of intellectual property by companies

5. •

   for smaller companies:

   1. ◦

      venture capital trusts

   2. ◦

      the enterprise investment scheme, and

   3. ◦

      the seed enterprise investment scheme

The focus of this Practice Note is on businesses