A 10% corporation tax rate will apply to profits from companies' worldwide trading activities which are attributable to qualifying patents, the Treasury confirmed in draft Finance Bill 2012 legislation published today, establishing the 'Patent Box' tax regime.

"The Patent Box will provide an additional incentive for companies in the UK to retain and commercialise existing patents and to develop new innovative patented products," the consultation response says. "This will encourage companies to locate the high-value jobs associated with the development, manufacture and exploitation of patents in the UK and maintain the UK’s position as a world leader in patented technologies."