The UK offers significant tax benefits for Intellectual Property through its Patent Box tax regime. The Patent Box regime is a UK tax incentive introduced in 2013 whereby companies apply a lower rate of Corporation Tax, It was introduced to reward UK companies that are exploiting patented IP Rights. A modified UK IP regime will apply from June 2016 and will limit benefits based on the proportion of relevant UK Research and Development undertaken as a proportion of global research and development.

Other jurisdictions can also offer tax efficient structures that may bring additional benefits. Selecting the right jurisdiction for IP holdings is a key step towards establishing the most efficient structure for the international licensing and distribution of these valuable assets.

Lancaster Knox will consider any existing structures that are in place for holding these rights. They will offer advice on whether these structures are still fit for purpose and/or whether a revised structure will add value to the IP from a commercial and tax compliance perspective.