With the UK Chancellor announcing a Corporation Tax increase from 2023 for larger businesses in the March 2021 Budget it would seem that the attractiveness of Patent Box is likely to increase amongst innovative companies.
From April 2023 Corporation Tax of 25% will be payable on company profits in excess of £250,000; whilst the current 19% Corporation Tax will remain for smaller companies whose profits do not exceed £50,000. Fortunately, it looks like the Patent Box scheme will continue and the tax payable on profits relating to patented technologies will remain at 10%, which could mean a 15% saving on tax on such profits for larger companies.
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