The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
FA 2016 introduced numerous modifications to the way in which the patent box calculations are to be performed with effect for accounting periods beginning on or after 1 July 2016. This follows the OECD’s recommendations on preferential IP regimes as part of the wider base erosion and profit shifting (BEPS) project. Under the provisions of the new regime, the amount of profit that can qualify for the reduced patent box effective rate of tax depends upon the proportion of the asset’s development expenditure that has been incurred by the company. The company must have carried out the R&D that led to the IP which generated the income which is included in the patent box calculations.
The commentary in this guidance note applies to the calculation of relevant IP profits of a company that is a ‘new entrant’ to the patent box regime, being:
Please refer to the following guidance notes for details of the calculation of relevant IP profits for existing claimants:
The rules set out below will apply to all companies
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