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VasheharanKanesarajahwonders if the UK patent box relief scheme is a mother of invention or moneyfor old rope

Vasheharan Kanesarajah - Clarivate

When the UK governmentlaunched its new innovation strategy ¹ in July of this year, itlisted among the various measures designed to safeguard the country’sintellectual property – the UK Patent Box tax relief. This relief allows for a reduced rate ofcorporation tax – 10% compared to the current standard rate of 19% (increasingto 25% from 2023) – on profits derived from qualifying patent inventions orequivalent forms of IP. It was introduced in 2013 to incentivise UK businessesto invest in R&D and innovation and make the most of their IP assets. Ifyou dig a little deeper into the recent figures for Patent Box relief, theypaint a more complex and uneven picture of its impact on innovation.