Pharma firm praises corporation tax plans

Date: 17th December 2009

Government plans to offer a lower corporation tax rate on patents have been welcomed by pharmaceuticals giant GSK.

The organisation has said that it will commit to around £500 million of investment in various products in the UK, which could potentially lead to the creation of new jobs.

Under the plans, the rate of corporation tax on patents will be reduced to ten per cent from 2013.

This effectively ensures that companies can derive higher incomes from product innovation.

Andrew Witty, chief executive of GSK, said: "The patent box is exactly the sort of active, long-term and creative support that we need from the government to ensure that the UK remains an attractive place for highly skilled sectors such as pharmaceuticals.

"For GSK, assuming the new regime will apply to patents currently under development, it will have the immediate impact of making the UK a priority area for future investments, particularly in manufacturing."

Business secretary Lord Mandelson also said that the corporation tax change is "excellent news".

Posted by Jacob Williams