By Claire West

The 1st April marks the start of the first period of account for companies which can benefit from the very generous Patent box regime.This phases in an effective corporate tax rates of 10% over a 5 year period on profits emanating from patented product and represents an opportunity for innovative qualifying companies to enjoy considerable tax benefits.

Paul Belsman, National Head of Tax at RSM Tenon says:

“Combined with the research and developments tax credits system, this should provide strong fiscal incentive for companies and arguably attracts inbound investment into the UK.”

As ever, the tax rules are complex and advice is needed around qualification criteria and capturing the relevant accounting information. However where a client uses or benefits from patented product , this favourable rate of corporation tax should be carefully reviewed.”