South Yorkshire businesses are being urged to take advantage of
tax breaks soon to be introduced for companies who come up with new
From April 2013, profits derived from patented products or
processes will quality for a reduced rate of corporation tax, with
companies paying ten per cent against a main rate of 25 per
Stephen Charles, tax manager at Sheffield-based independent
chartered accountants and specialist business advisers Hawsons,
"Clearly, in introducing the 'patent box' which offers ten per
cent corporation tax on profits attributable to qualifying patents,
the Government is trying to encourage businesses to come up with
new, innovative ideas.
"The good news is that there only has to be one patented and UK
managed invention embodied in a product for the entire product to
be within the patent box. So the scope of the relief is very wide
and many companies will be able to qualify.
"The relief only comes in for profits after April 1, 2013 but if
your company has patents, it would be useful to start identifying
them now so that the income streams which will benefit from the new
proposals can be properly determined."