In his pre-budget report to Parliament on 9 December 2009 the UK Chancellor of the Exchequer announced the Government’s intention to introduce a “Patent Box” under which income derived from patents would be taxed in the UK at a reduced rate of corporation tax (10%). Although the proposal was met with approval by some quarters of innovative industry, the published report makes it clear that the proposal will only apply to patents granted after the Finance Bill 2011 has been passed and even then only to income arising after April 2013.