The Budget reopens the “Patent Box”, by Paul England, Simmons & Simmons
The UK Emergency Budget 2010 was released on Tuesday 22 June 2010. Hidden away in Table 2.4 on Page 55 of the full Budget document is the previous administration's proposal to introduce a “Patent Box”, which is one of the “measures announced by the previous Government at the March 2010 Budget or earlier that have not yet come into effect, and which the Government confirms will be implemented and legislated for”. Other measures aimed at IP are included.
What is the “Patent Box”?
A “Patent Box” scheme ring-fences income derived from patents and gives it a favourable tax treatment. Such schemes have already been introduced in countries such as Belgium and the Netherlands, with the aim of encouraging innovative IP-rich businesses to locate to those countries.