Commentary

B5.341 Employee awards

Business tax
Business tax | Commentary

B5.341 Employee awards

Business tax | Commentary

B5.341 Employee awards

In normal circumstances an inventor who is employed by a company to invent would be rewarded by a salary, possibly with bonuses, commissions, fringe benefits and other perquisites, all of which would be chargeable under the rules of ITEPA 2003.

However, an employee inventor may apply to the court under the Patents Act 1977, s 40, for an additional payment to be made to him by the employer where his work has given rise to a patent of outstanding benefit to the employer. The court may award an additional payment to the employee if it considers it just to do so, bearing in mind the remuneration already paid to the employee1.

It is likely that such an award

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