Cornish businesses could halve their corporate tax, saving more than £4 million, according to the tax specialist at the Truro office of accountancy firm Bishop Fleming.
The Government’s recently announced ‘Patent Box’ will halve the corporation tax that businesses pay on profits derived from patented products and processes.
Robert Bailey has estimated that this could save Cornish companies more than £4 million.
“Searching the latest accounts filed at Companies House, Cornwall-based companies engaged in manufacturing and IT generate £70 million in profits, producing an annual corporation tax bill of up to £16 million,” said Bailey.
“If just half of that profit is earned from products or processes covered by the Patent Box, the tax saving for those Cornish companies will top £4 million.
“This is a major new relief,” Bailey added. “So Cornish companies need to register a patent for their IP (Intellectual Property) technology, if they have not already done so. The cost of registering a patent is a few thousand pounds, which will be small in comparison to the tax savings for many Cornish businesses.”
The new Patent Box tax savings will be phased in from April 2013.