RE: RNS4 Aug 2022 21:05
Please note it was Wilson who refreshed our memories on the 'Patent Box' subject.
From 27th Sep 2021 RNS "Half year 2021 Results":
"Matters affecting the tax charge
During 2020, Novacyt applied for a number of patents for technology it developed during the period. Patents can take several years to be granted, if at all, and at the reporting date, all the patents were still going through the process for approval. If one or more of the patents ultimately are granted then the Group hopes to be able to benefit from the UK Patent Box regime, which is a special low corporate tax rate used by several countries to incentivise research and development by taxing revenues from patented products differently from other revenues. Subject to a number of adjustments, the effective rate of tax on profits derived from the sale of products subject to patents is close to 10% rather than the current UK corporation tax rate of 19% (due to rise to 25% in 2023). The Patent Box rate can only be claimed once a patent has been granted, although the benefit can be backdated to the time at which the patent was applied for, and so this is not reflected in the interim accounts. The H1 2020 estimated patent box tax relief of £3,219,000 was reversed in the full year 2020 accounts and a revised figure will be booked once/if patents are granted.
The corporation tax liability of £15,116,000 at 31 December 2020 was paid in January 2021."
[aside - Novacyt paid £15,116,000 corporation tax within one month of the end of the 2020 tax year? - is that right?)
Note RNS 5th January 2021 - "announces that James McCarthy has been appointed as Chief Financial Officer (CFO), whilst Anthony Dyer has taken on a new role as Chief Corporate Development Officer (CCDO).
Both appointments are with immediate effect. Mr McCarthy will become a Board Director of the Company, subject to shareholder approval, at the AGM. Anthony Dyer will remain a Board Director until James McCarthy is elected to the Board."
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Was Dyer paying corporation tax too early, or did McCarthy pay it? - I may not be correct here, but a previous reference link (not a HMRC link) stated 'if the company’s taxable profits are greater than £1.5m, it will pay Corporation Tax in four quarterly instalments,' - so the CFO had until 31st March 2021 to pay this, as the 2020 profits were only computed in Jan 2021?
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Also
From RNS: "Full year results and update on growth strategy" - Thu, 28th Apr 2022
"No corporation tax was due at the end of 2021 as the Group was in a loss-making position, compared with a £15.1m liability in 2020. At the time of signing these accounts a patent had been granted and to the extent there are qualifying profits the Group expects to apply for UK Patent Box relief in the 2022 accounts.
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