Commentary

D1.1202A Overview of patent box rate

Corporate tax
Corporate tax | Commentary

D1.1202A Overview of patent box rate

Corporate tax | Commentary

Patent box rate

D1.1202A Overview of patent box rate

The patent box provisions were introduced by FA 20121 and allow qualifying companies to elect to effectively apply a 10% rate of corporation tax to all profits attributable to qualifying patents, whether paid separately as royalties or embedded in the sales price of products. The patent box rate is not given as reduced rate of tax on eligible profits. Instead a deduction is given from trading profits of an amount that has the same effect as reducing the main rate of corporation tax on eligible profits to the special IP

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