Patent Box tax relief explanation put online by HMRC

A video discussing the Patent Box, a tax incentive designed to encourage innovation, has been placed on YouTube by HM Revenue and Customs (HMRC) to give businesses advice on the subject.

The department will be phasing in the new tax relief from April 1st next year, giving firms the power to apply for a lower rate of Corporation Tax of ten per cent on profits from certain innovations.

And to help encourage small firms to look into taking advantage of the relief, HMRC has published a video on the internet explaining how it all works.

David Gauke, Exchequer Secretary to the Treasury, said that the Patent Box is one way in which ministers are looking to encourage growth.

"The government wants to create the most competitive tax system in the G20 and to make the UK the best place in Europe to start, finance and develop a business," he explained.

"The Patent Box is a key initiative to make the UK tax regime competitive for innovative high-tech companies."

It comes after the department sent out letters to suspected tax avoiders last weekend as it continues to claw back money it is owed.

Posted by Thomas Fletcher

Last updated: 28th November 2012