STAFFORD businesses will be able to take advantage of new tax relied from April 1.
Firms which profit from patented inventions through royalties or product sales will benefit from 10 per cent rate of corporation tax on the profits from qualifying patents and certain intellectual property rights through Patent Box.
Richard Stonier, partner at Stafford solicitors, Dean Statham, said: “This new tax relief will only be available to eligible companies which are liable to corporation tax, so will not apply to sole traders, partnerships or limited liability partnerships.
“However, those who qualify should seek professional advice as soon as possible to ensure they are able to take full advantage of the maximum reliefs they are entitled to.”
To qualify a firm must own a qualifying patent or exclusive license in a patent.
It must also have either developed or made a significant contribution to the creation of the patented invention, performed significant activity to develop the invention or an item protected by the patent, or made a significant contribution to the development of a product or process incorporating the patented item.
Patents granted before 1 April 2013 may be eligible, but other forms of intellectual property such as trademarks or copyrights are not.
A product which is already fully developed will not be eligible.
The regime will be phased in over four years, with the 10% rate applying to 60% of the qualifying profits in the first year.
This will rise by a further 10% each year, so that from April 2017, 100% of qualifying profits will be chargeable at the 10% rate.