The BioIndustry Association has welcomed the UK’s “patent box” tax incentive programme, which came into force on April 1st. The scheme will apply a 10% rate of corporation tax to profits from patents and certain other forms of intellectual property, and is estimated to save British businesses £1 billion in corporation tax.
In a statement issued to coincide with the change, Steve Bates, BIA Chief Executive Officer, said: “The introduction of the Patent Box will provide an incentive for companies – including those in life sciences – to exploit their intellectual property in the UK. The Patent Box should make the UK a prime location for investment in R&D and manufacturing.”
Following the announcement of the Patent Box, GlaxoSmithKline committed to investing £500 million in manufacturing facilities in the UK, including £350 million in building a new biopharmaceutical manufacturing facility in Ulverston, Cumbria. The Patent Box also played a significant role in AstraZeneca’s decision to move its small-molecule R&D from Alderley Park to Cambridge rather than to the US.