South Yorkshire businesses are being urged to take advantage of tax breaks soon to be introduced for companies who come up with new product inventions.

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 cent.

Stephen Charles, tax manager at Sheffield-based independent chartered accountants and specialist business advisers Hawsons, said today:

"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."