Industry spokesman welcomes UK “patent box” tax incentives

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.