Patent box is £1bn opportunity for Yorkshire innovators
8 February 2013
The government is about to launch a £1bn boost to British innovation.
Business advisory firm Deloitte is warning that Yorkshire firms risk missing out on the financial incentives provided by the Patent Box relief as many still don’t fully appreciate the benefits.
Patent box will allow businesses in Yorkshire to pay lower rates of corporation tax on inventions and certain other innovations. The relief will be phased in from 1 April 2013 and the lower rate of Corporation Tax to be applied will be 10 per cent.
The government has set aside £1bn a year to cover the relief in a bid to boost British innovation and encourage firms to locate high value jobs associated with the development, manufacture and exploitation of patents in Yorkshire and the rest of the UK.
HMRC’s policy team, which is responsible for the implementation of the new rules, will be holding a Q&A session with Deloitte in Leeds on Monday (11th February 2013) to help firms understand how they can benefit from Patent Box.
It has been designed to work alongside existing R&D tax relief and will benefit patent owners across a broad range of industries from manufacturing through to consumer businesses.
Stuart Cottee, head of tax at Deloitte in Yorkshire and the North East said: “Patent box will help innovative Yorkshire firms compete abroad, attract high quality investment in to the region and help keep highly skilled jobs in the UK by making it more attractive for multi-national firms to conduct R&D in the region.
“The introduction of the relief could prove a massive shot in the arm for Yorkshire’s innovative companies but the danger is that firms across Yorkshire fail to appreciate both the value of the relief and the scale of this opportunity.
“While the relief doesn’t start until April firms hoping to qualify should be thinking about putting measures in place now to ensure they satisfy the requirements needed to qualify for the patent box.”
Notes to Editors
In this press release references to Deloitte are references to Deloitte LLP, one of the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.