Comment
The Chancellor of the Exchequer, George Osborne, yesterday confirmed that a Patent Box will be introduced in the UK in 2013. This policy will reduce the rate of corporation tax on the income derived from patents to 10%. Our analysis suggests that the policy will lead to a large reduction in UK tax receipts from the income derived from patents, is poorly targeted at promoting research, will add complexity to the tax system, and it is far from clear that any additional research resulting from the policy will take place in the UK.
