20 October 2015

Update on Patent Box

The OECD have just released the final deliverables of their Base Erosion and Profit Shifting (BEPS) Action Plan. This includes new guidelines in relation to the implementation of IP Boxes such as the UK Patent Box Regime.  They will require countries with IP Boxes to implement the so-called “nexus” approach from 1 July 2016. Largely the news seems to be good for both granted patents and importantly for patents still pending at that time, as rules allow grandfathering of the original more generous UK Patent Box regime for companies that qualify for the regime at 30 June 2016 and those grandfathering rules are likely to apply even to pending patents.  

HMRC are now seeking views on how to legislate Patent Box, and consultation is open until 4 December 2015.