Investment scheme could be revived to encourage businesses
The Patent Box scheme was introduced by the UK Government in 2013 to encourage more investments in research and development.
After changes to the scheme by the EU in 2016, its appeal was reduced; however, this may soon be changed.
Moore Stephens Partner Steven Levine said that the UK can boost investment in research and development by reviving Patent Box and giving businesses an attractive tax break as an incentive.
He believes that this move will ensure that the UK retains its leadership position as an innovation hub after Brexit.
Businesses in the UK currently invest just 1.7 per cent of GDP on research and development, according to the data available from the Organisation for Economic Co-operation and Development.
Levine added that an attractive tax break through Patent Box would encourage businesses from Europe to relocate their research and development jobs to the UK.
For the moment, Patent Box will remain in its current form; but administrative amendments to the R&D tax scheme in the Spring Budget may indicate that change is coming.