The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The aim of the patent box regime is to provide an incentive for companies to develop and retain patents and other qualifying intellectual property within the UK as part of the Government’s growth agenda. Finance Act 2012 originally introduced the legislation governing the regime and HMRC’s guidance appears in HMRC’s Corporate Intangibles Research and Development Manual at CIRD200000 onwards.
The regime is available for accounting periods commencing on or after 1 April 2013. It applies to companies within the charge to corporation tax that actively hold qualifying patents. Qualifying companies can elect for a reduced rate of corporation tax to apply to the income generated from the relevant patents. The reduced rate of corporation tax is given effect by allowing a deduction to be made in the calculation of the company’s total taxable profits, rather than by actually applying a reduced rate of tax to the relevant patent profits. Patent and non-patent profits are therefore not separated and taxed at different rates in the corporation tax computation. The patent box deduction gives the effect that patent box profits are taxed at a reduced rate.
Please refer to the Patent box ― qualifying companies guidance note for information on the qualifying company conditions. The regime applies equally to corporate partners, with some necessary modifications. See CTA 2010, s 357GB. It is not available to individuals.
The term ‘accounting period’ within the patent box legislation refers to a corporation tax accounting period, rather than a period of account for which financial statements are prepare
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.