UK Chancellor Rishi Sunak announced as part of his March 2021 budget that, from April 2023, Corporation Tax of 25% will be payable on company profits in excess of £250,000. Corporation Tax of 19% will remain for companies with profits of £50,000 or less.
A silver lining in this: the UK government’s ‘Patent Box’ scheme appears untouched by the latest budget, meaning profits earned from the sale of patented products will be taxed at the reduced rate of 10%.
This scheme is worthy of consideration for UK-based businesses large and small, providing a strong financial incentive to obtain patent protection for technological innovations.
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