10 per cent patent tax a modest step in the right direction, says CIOT
The Chancellor’s announcement of a 10 per cent corporation tax rate on some patent income has been welcomed by the Chartered Institute of Taxation.
The CIOT has been among many organisations calling for the introduction of a ‘royalty box’ – low or nil rate tax for income from intellectual property.
John Whiting, CIOT Tax Policy Director, said:
“This is a modest but welcome step in the right direction. The UK needs to have a tax system that hangs out the welcome sign for patents, rather than seeming to encourage the use of jurisdictions such as the Netherlands with their generous systems for such income.”
Notes to editors
The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 14,900 members have the practising title of ‘Chartered Tax Adviser’.
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