News Flash: 2012 Budget confirms the UK government's commitment to cutting taxes on patents
Today the Chancellor announced a Budget designed to "turn Britain into Europe's technology centre" with a range of benefits for technology-based companies, especially small start-up businesses:
- Tax relief on income from patents according to the Patent Box scheme
- Continuation of R&D tax credits with an "above the line" incentive
- Investment in major new university research facilities
- Support for the life sciences, aerospace and digital industries
- New tax credit scheme for companies creating video games, animation and high-end television productions
- Easier rules allowing academics to convert research into commercialisation
- Increased grants under the Enterprise Management Incentive scheme to help start-up companies recruit and retain skilled employees
- Headline rate of corporation tax cut from current 26% to 24% from April 2012, reducing to 23% in 2013 and 22% in 2014
- Simplified tax rules for small businesses (with a turnover of up to £77,000)
- Tax rate limited to 20% for small companies
For more information on the proposed Patent Box scheme, please refer to our guidance note.