Following 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.

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. 

“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.

“On a wider EU level, the fact that the regime has now secured the support of G20 nations means that there is now a basis for working together and reaching agreement on other tax matters.”