As of 1 April 2013, the UK now offers a significant opportunity for UK companies and UK subsidiaries of foreign companies to reduce the corporation tax on world-wide profits arising from certain IP. The UK Patent Box is a system that allows companies to elect to reduce the UK corporation tax on world-wide profits arising from qualifying IP, in effect equating to an approximate 10% rate of corporation tax rather than the standard 23% or 20% rate. This represents a potentially very substantial tax reduction, which may be of great benefit to companies who license, sell or use patents as the Patent Box relates to profits arising in the form of royalties, sale of patents, or sale of products incorporating patented technology.