'Patent box' tax proposal will help boost UK bioscience

The UK's BioIndustry Association (BIA) says it welcomes the proposal to introduce a 'patent box' announced in Chancellor of the Exchequer Alistair Darling's Pre-Budget Report yesterday. This measure was called for in the Bioscience Innovation and Growth Team Review and Refresh of Bioscience 2015, published earlier this year and is part of the package of measures outlined in the Office for Life Sciences 'Life Sciences Blueprint.'

The introduction of a 'patent box' scheme from 2013 will provide incentives for companies to exploit intellectual property, developed in the UK, in the UK. It is hoped that this measure will make the UK a prime location for investment in R&D and manufacturing, the association stated.

Clive Dix, BIA chairman, said: 'Government has recognised that life sciences is essential to building Britain's future and the 'patent box' shows that government is listening to the BIA and others in the UK life sciences sector. Delivery of the 'patent box' is part of the package of measures outlined in the Office for Life Sciences 'Life Sciences Blueprint' and will make a real difference to ensuring a successful and sustainable future for the sector in the UK.'

UKIIF funding welcomed

The BIA also welcomes the announcement by the Department for Business, Innovation and Skills that Hermes Private Equity and the European Investment Fund have been appointed, subject to contract, as the fund-of-fund managers of the UK Innovation Investment Fund (UKIIF). Initially it is expected that the UKIIF will have £325 million ($537.4 million) to invest, £150 million from the government and £175 million from private investors, with investment starting at the beginning of next year. £200 million is for digital/ICT, life sciences and advanced manufacturing.

The £200 million technology fund-of-funds is to be managed by the European Investment Fund. The UK government will invest £100 million in this fund, of which at least £25 million is for life sciences. Hermes Private Equity will manage the £125 million low-carbon and clean tech fund-of-funds.

The BIA says it has been calling for the establishment of an Innovation Fund since the publication of the Bioscience Innovation and Growth Team Review and Refresh in January of this year, and was delighted when the UKIIF was announced in June. The appointment of the fund-of-funds managers means that it is now possible for the first, much needed, investments to be made.

Separately, Lord Paul Drayson, Science & Innovation Minister, said: 'UKIIF has been a hit with investors. We can now ensure that Britain's high tech growth companies will have the capital to fulfil their potential. By backing entrepreneurs we back jobs and growth.'