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PRESS RELEASES

Date: 12th December 2009

Company Tax Reduction for Patent Licence income Promised

In the pre-budget announcement last week the UK Government introduced Corporate tax reduction to 10% on all company profits from Patent licensing. All companies will now pay only 10% on profits from Patent licence income, instead of the normal Corporate Tax (Currently 20%).

If you are a company with one or more subsidiary companies using patented technology, you should consider seeking advice from your accountant about the possibility of putting your patent(s) in the name of a holding company, and licensing your subsidiary company or companies under the patents. In this way the holding company pays 10% tax on the profits from licensing and the subsidiaries may be able to set their patent licence costs against corporate Tax. We are not competent to advise on financial matters - You must seek advice from a qualified Accountant.


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