Corporation Tax Lowered For Patented Products
New Government legislation has lowered the rate of corporation tax on profits from products which are patented or include patented components. The Patent Box enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented 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.
You can only benefit from the Patent Box if your company is liable to Corporation Tax and makes a profit from exploiting patented inventions.Your company must also own or exclusively license-in the patents and must have undertaken qualifying development on them.
A full guide to the new system can be found here:-