End of the patent box grandfathering rules

In its eight-year history the UK patent box regime in Corporation Tax Act 2010 Part 8A has a long story to tell. With phasing in and a second version of the rules with grandfathering provisions those advising on a scheme that was complex to begin with have up to now had little rest. However the position should settle down from 1 July 2021 when the grandfathering rules ended and we were left with a single regime to follow.

These changes are likely to require additional in-year record keeping for many businesses that had been relying on grandfathering provisions up to now. Historically the patent box calculation could for many businesses be dealt with after the period ended while preparing the corporation tax calculations.

The good news is that the overall benefit is likely to remain the...