Intellectual Property
The Following Insight is an Extract from the Intellectual Property Section of Finding Your Way: The Trade and Investment Guide to the UK 2019/20 - Provided by Irwin Mitchell (Pages 20-21)
Incentives
R&D –
R&D tax incentives are available to companies undertaking innovative scientific or technological research work. Under the SME regime companies can claim a deduction of 230% of qualifying R&D expenditure or claim a cash credit if loss making. Large companies are eligible to claim an R&D Expenditure Credit, which provides tax relief equal to 9.72% of qualifying R&D spend.
Patent Box –
Development work undertaken in the UK leading to a qualifying patent may allow a company to benefit from the UK Patent Box regime and elect to apply a 10% Corporation Tax rate to profits attributable to qualifying patents.
IP Amortization –
The UK has an established tax regime associated with the taxation of intellectual property. In some cases tax deductions for amortization of certain acquired intangible assets are available.
Share Incentive Plans –
Share incentive arrangements, including tax efficient HMRC approved schemes, can be implemented as part of an individual’s total remuneration package.
Expats –
Reliefs are potentially available for expats on secondment to the UK business and should be considered in advance of employees moving internationally.
