GSK to invest over £500m in the UK

GLAXOSMITHKLINE will build its first new manufacturing plant in over two decades in response to the government’s plan to cut the rate of corporation tax on income from patents.

The drugmaker said yesterday the 10 per cent reduction in corporation tax on profits generated from UK-owned intellectual property will allow the firm to push ahead with plans to invest £500m in new manufacturing facilities, creating about 1,000 jobs.

The coalition’s plans, originally drafted by the former Labour government, will create a so-called “patent box” that lowers the tax rate on profits from successful product launches originating from a patent registered and then manufactured within the UK.