CIA welcomes the publication yesterday of the Government’s confirmation of its intention to introduce a “patent box‟. The measure is designed to encourage investment in R&D and related manufacturing in the UK by introducing a lower rate of corporation tax on profits generated from UK-owned intellectual property. Specific details of how the mechanism will work are now the subject of consultation.

Commenting on the proposals, CIA’s Chief Executive Steve Elliott said:

“The introduction of the patent box supports the UK’s position as a global centre of excellence for science and R&D. In the current difficult economic environment it is a welcome step to improve the attractiveness of the UK as a place for the private sector to locate and invest. This legislation has the potential to transform the way in which the UK is viewed by companies who invest heavily in high added-value R&D and manufacturing. We have for too long seen UK inventions and discoveries leading to downstream economic activity elsewhere as commercial development and manufacturing, and associated employment, have been attracted to other countries with more favourable corporation tax regimes. Introduction of the UK patent box will help to change this dynamic.”

Contact Name: Fiona Ferguson