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From the Newsdesk

The Budget – IP & related issues affecting the Creative Industries

The Chancellor, Philip Hammond delivered an unremarkable Budget despite all the hype and many believe that this was a lost opportunity to support the Creative Industries at a critical time when it already punches above its weight.The Design Council acknowledged a number of positive initiatives to support research & development, retraining, up-skilling science teachers as well as a significant amount ear marked for innovation and skill in construction.  Sarah Weir, CEO of the Design council said, “However, more needs to be said about design. The speech, which focussed on science, innovation and emerging technologies, did not mention design at all. This was disappointing, particularly as we know that design contributes £71 billion to the U& economy and there is an ever increasing skills gap. To deliver an agenda that creates long term growth and boost productivity we must also realise the importance of design.”

The Alliance for Intellectual Property has given us the following brief on general and IP related issues. While much of the focus related to reforming the housing market and increasing funding for the NHS, there were still a number of important measures relevant to IP and the creative industries. These include increasing investment in R&D, supporting intellectual-property rich business by ensuring access to finance, and also changing the rules governing tax evasion via online platforms.

Research and Development Increased spending to “support for our creative and digital industries by developing pioneering immersive technology for creative content, and launching a new AI and machine-learning programme targeted at the services sector.”

• Amending immigration rules through an expansion of the “exceptional talent route, benefiting current and future leaders in the digital technology, science, arts and creative sectors.”

Access to Finance

•  “The government will support businesses to get the finance they need by extending the British Business Bank’s Enterprise Finance Guarantee to March 2022 and expanding the programme to support up to £500 million of loans per annum. The government will also work with businesses, lenders, insurers, the British Business Bank and the Intellectual Property Office to overcome the barriers to high growth, intellectual property-rich firms, such as those in the creative and digital sector, using their intellectual property to access growth funding.”

Corporate Tax

• “The government will consult in 2018 on the tax treatment of intellectual property (the Intangible Fixed Asset regime). This will consider whether there is an economic case for targeted changes to this regime, so that it better supports UK companies investing in intellectual property.”

• “Alongside Budget the government has published a position paper setting out the challenges posed by the digital economy for the international corporate tax framework and its proposed approach for addressing those challenges.”

Tax Avoidance

•   “The Intangible Fixed Asset rules will be updated with immediate effect, so that a licence between a company and a related party in respect of intellectual property is subject to the market value rule, and to ensure that the tax value of any disposal of a company’s intangible assets is correct, even if the consideration is in something other than cash.“

A fair and Sustainable Tax System

• The Budget will “crack down on online value-added tax (VAT) evasion by strengthening and extending existing powers that make online marketplaces responsible for the unpaid VAT of their sellers”

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