U.K. to open 'patent box' wider

The U.K. plans to extend its proposed "patent box" to cover all active patents after receiving comments that an earlier version of the plan failed to create sufficient incentives for companies in the U.K. to retain and commercialize existing patents. Previously, the plan only included patents commercialized after Nov. 29, 2010. The comments came in a second consultation on the program, which would provide a 10% U.K. corporate tax rate for income stemming from patents granted by the U.K.'s Intellectual Property Office (IPO) or the European Patent Office (EPO), instead of the current 26% rate.

The U.K. is seeking comments on whether including patents from both the IPO and EPO will cause "significant commercial distortion," as well as whether patents from EU member state offices should be included. The consultation also asks if the proposed ownership and development requirements adequately allow licensed and partnered patents to qualify for the program. To be eligible for the tax deduction, a company would need to be actively involved in ongoing decision-making connected with the exploitation of the patent. ...