UK's BioIndustry Association reacts to publication on Patent Box reforms

The BioIndustry Association (BIA) has responded to the publication of a new consultation by the UK Treasury on Patent Box reform by publishing an overview document on the changes and how they could affect the bioscience sector.

The BIA published the document in partnership with Confluence Tax, whose partner and founder Colin Hailey chairs the BIA’s finance and tax advisory committee. The main change implemented to the Patent Box is that claims will be subject to a “nexus” approach: to qualify for the tax relief that comes with the Patent Box system, companies must demonstrate a correlation between the income and their own research and development expenditure that led to the patent.

Steve Bates, chief executive of the BIA, said: “The Patent Box has formed part of a compelling fiscal and tax environment that has supported and helped grow the UK bioscience sector. The BIA has engaged with the international debate and looks forward to assisting the government in ensuring that the reformed Patent Box scheme continues to provide appropriate tax incentives for highly-innovative sectors such as bioscience.”