DRUG giant GlaxoSmithKline (GSK) is poised to repatriate hundreds of pharmaceutical patents to the UK to tap a new intellectual property tax regime introduced by chancellor George Osborne.
The FTSE 100 giant, the UK’s biggest drug maker, will move about 150 overseas research projects to the UK to benefit from the so-called patent box regime introduced by Osborne in the 2011 Budget.
Under the rules, which came into force in April, profits made on British-based intellectual property is taxed at a lower rate of 10 per cent, instead of the traditional corporation tax rate of 23 per cent.
“The patent box has changed how we view the UK as an investment prospect,” GSK said.
It comes more than a year after GSK boss Sir Andrew Witty announced plans for its first new UK factory for 40 years as part of a £500m investment spree on the back of the patent box rules.
Despite the lower corporation tax on patents, it is likely GSK will contribute more in the long run to the Treasury’s coffers due to the relocation of the projects back to UK soil.