UK patent box: fair competition or a harmful tax practice?

There is growing debate over whether preferential innovation regimes represent harmful tax practices. Whilst there are already many existing regimes throughout Europe, both the newly introduced UK and Cyprus patent boxes have been referred to the European Council. The key question is whether they represent a harmful tax measure under the European Code of Conduct on Business Taxation (EU COC). Based on the information currently available, it appears unlikely that any of the potential challenges to the UK patent box will have a significant impact on dissuading the UK government from its continued desire to make the UK a highly competitive location for innovation activities.