Patent Box - tax reductions announced in Pre-Budget Report

Chancellor Alistair Darling's Pre-Budget Report contained an announcement that will be of interest to patentees, with an indication that in future a lower Corporation Tax rate will be applied to patent-derived income. The motivation behind this change is to strengthen incentives to invest in innovative industries, however the so-called 'Patent Box' is not expected to be up and running until 2013. Tax breaks of this nature are already on offer elsewhere in Europe; in Benelux and in Spain. For HMRC's notice on the subject click here.