Latest news: Tax incentive to create ‘hundreds’ of jobs

A proposed government tax break could lead to the creation of hundreds of science-based graduate jobs. 

The mooted ‘patent box’ incentive would cut the rate of corporate tax on profits made from UK-owned intellectual property, such as patents. The aim is to encourage innovation and entrepreneurship in the UK.

Although yet to be formalised, the proposed tax break has already encouraged pharmaceutical company GlaxoSmithKline to announce plans to create 1,000 new jobs in the UK through research work.

GlaxoSmithKline will invest £500 million in new facilities, including its first new manufacturing facilities in the UK for 25 years, a new biopharmaceutical manufacturing plant and the expansion of a respiratory drug centre in Hertfordshire.

‘I guarantee you that if this (the tax break) hadn’t happened, there would be no GSK biopharmaceutical facility being built in the UK,’ said GSK chief executive Andrew Witty.

‘This will lead to the UK moving to the top of the list in terms of where we would want to think about investing,’ he added.

The ‘patent box’ tax break will cut corporation tax on income from patents to just 10% and is scheduled for introduction in 2013. The current corporation tax rate is 28%.