The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
FA 2016, s 64 introduced major changes to the patent box regime, following recommendations made by the OECD to implement an internationally developed framework for preferential IP regimes to address base erosion and profit shifting (BEPS). The commentary in this guidance note applies to the calculation of relevant IP profits of a company where:
the accounting period begins before 1 July 2021
the company is not a new entrant, ie the company made a patent box election for an accounting period beginning before 1 July 2016, or it has not elected to be treated as a new entrant, and
any amount of the relevant IP income brought into account as a credit in calculating the profits of the trade for the accounting period is properly attributable to a ‘new’ qualifying IP right, ie IP granted, assigned or exclusively licensed to the company on or after 1 July 2016
CTA 2010, s 357BO
For details of the calculation of relevant IP profits for existing entrants with no new IP and for new entrants, see the following guidance notes respectively:
Calculating relevant IP profits ― existing claimants with no new IP rights
Calculating relevant IP profits ― from 1 July 2016
From 1 July 2021, the rules at CTA 2010, ss 357BF–357BNC (Pt 8A, Ch 2A) (those applicable to new entrants) apply to all companies. Where an accounting period straddles these respective dates, the period is split into two notional periods with profits and losses being apportioned on a just and reasonable basis.
Income which is attributable to a new qualifying IP right assigned to the
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