Here’s an article from Thomson Reuters which British clients might find interesting.
The UK recently promulgated new legislation that cuts the corporate tax rate on income derived from patented technologies. A new paper published by Thomson Reuters identifies specific strategies companies may implement to benefit from the tax advantages associated with this new legislation and it is well worth a read.
In a nutshell, the key strategies discussed in the paper include the following:
Portfolio Alignment: A comprehensive patent portfolio audit, patent-to-product mapping and gap analysis must be conducted, enabling companies to demonstrate links between their IP portfolios and the specific UK-taxable revenues derived from each component part.
File Today for Yesterday’s Tax Relief: Claims to “Patent Box” relief may be back-dated for up to six years. If, for example, a company files a patent on May 1, 2013, and it is granted in 2019, the company could add a deduction in 2019 for the intervening six-year period during which the patent was being processed. This may be sensible given the gradual application of the legislation .
Consider Licensing, Not Just Selling: A company that sells a patented product to its customer can only claim relief on the single sale. However, by licensing a patent to the customer, the customer may also be able to claim “Patent Box” rights and the upside shared.
Bear in mind that IP tax is a complicated affair and it is best to discuss with your IP attorney in conjunction with a tax specialist in the relevant jurisdictions.