London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Reduction in patent box tax relief?

The UK has settled its dispute with Germany over patent box relief.

The regime was intended to encourage high-tech businesses to commercialise their intellectual property in the UK and charge a reduced tax rate on the resulting income.

Some countries thought the tax break amounted to harmful tax competition.

The agreement should stop companies from artificially shifting profits to benefit from patent box relief.  It is likely to restrict the tax break to R&D carried out in the UK, a much tighter test than the existing rules.

However, the impact will be reduced by “grandfathering” provisions that are set to preserve current rules for a number of years. 

Unfortunately all this means more uncertainty and probably complexity.

 

 

Date: 28th November, 2014
Author: Cathy Corns

SHARE THIS

Articles from this Author

4th April, 2018
EMI options - a current risk

20th March, 2018
Beneficial loans

20th March, 2018
IR35 consultation

20th March, 2018
Tax codes

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

Mercer & Hole Chartered Accountants support @alzheimerssoc as their charity of the year bit.ly/2EJbtw5 pic.twitter.com/3KLTdzwPnD

Jamie Wooldridge to speak at the Business Accelerator Summit MK bit.ly/2qih6wf @brightbizadvicetwitter.com/i/web/status/9…

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn