The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The introductory section of the patent box legislation states that: “A company may elect that any relevant IP profits of a trade of the company for an accounting period for which is it is a qualifying company are chargeable at a lower rate of corporation tax”.
In order to give effect to the election, a deduction is taken when calculating the profits of the trade for corporation tax purposes for the period in question, such that relief is given by way of a lower effective rate of corporation tax on patent box profits.
The way in which the deduction is calculated is set out in CTA 2010, s 357A(3) as follows:
RP is the relevant IP profits of the trade of the company
MR is the main rate of co
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