Recently-announced timeline of UK Patent Box changes helps address uncertainty, says patent attorney

Following UK Chancellor of the Exchequer George Osborne’s confirmation of an overhaul of the Patent Box regime just last month, Financial Secretary to the Treasury, David Gauke, has provided much-needed clarity as to the timescales involved as part of a series of announcements made in the run up to this week’s Autumn Statement.

Commenting on the issue, Michael Jaeger, patent attorney at Withers & Rogers, said:“It has been confirmed that a new Patent Box regime is to be introduced in 2015 but that, crucially, this will be based on a comprehensive round of consultation with Patent Box users. This provides a platform for helping shape the new system, as well as a facility for determining whether individual businesses still qualify.”

He noted that Mr Gauke “has specifically pledged a commitment to encouraging more British businesses to perform their R&D in the UK. For those already doing this, the proposals should not affect their ability to benefit from Patent Box. In particular, where 77% or more of the R&D work for a patented invention is undertaken in the UK, a company can benefit fully from patent box. Where the amount of UK-based R&D undertaken is less than this amount, the extent to which the company can benefit will be reduced accordingly.”