Patent Box – what next?
The UK’s patent box regime has been making headlines this week. It is proposed to alter the scheme to require tax benefits to be connected directly to R&D expenditures; narrowing the current scheme.
The proposal comes on the back of claims from the EU that the UK scheme was discriminatory. Germany and the UK have agreed on the joint proposal (which can be read here) and the amended rules appear to address concerns expressed by some countries. The proposal seeks to address outstanding issues in relation to qualification of expenditures, grandfathering and tracking qualifying R&D expenditure. The proposal is expected to be agreed at the G20 in January 2015.
For companies already innovating in the UK, it appears that the newly proposed scheme may not substantially change the effect of the patent box, but what the rules turn out to be may be the real story.