December | 2011 | Intellectual Property Tax

The proposals have been pretty much reworked in some detail into the draft legislation
The reduction in the presumed routine profit from 15% of specific expenses to 10% of general overheads means this is less mad than it was, although it’s still pretty silly for patent licensing businesses such as biotechs
The separation out of the active management requirement is welcome, as it means biotechs etc that licence out their R&D results can still qualify
A bonus for small companies is that the relief calculation uses the main CT rate so they get a bit more relief than they would if the small co’s rate was used in the calculation
The doubling of the de minimis to £1m before complex paperwork has to be submitted is useful
BUT: it’s still unlikely to appeal to anyone much other than the multinational pharmaceutical companies, despite the changes. And still does absolutely nothing for any other substantive form of IP.

* well, the least it seems on first reading that one might want to know …

Intellectual Property Tax