If your company holds qualifying patents and generates income from patented products or processes, Patent Box relief reduces the effective corporation tax rate on those profits from 25% to 10%. On £1m of qualifying patent profits,
that's £150,000 a year.

It's one of the most valuable reliefs available to IP-rich businesses. It's also one of the most commonly missed - because R&D advisors don't mention it, patent attorneys don't handle tax, and most generalist accountants find the
computation too complex to tackle.

That's where I come in.

What Patent Box Actually Involves

The election itself is simple. The computation usually isn't.

Patent Box requires you to identify qualifying IP income, strip out routine returns and marketing assets, apply the relevant IP income fraction, and calculate the deduction. For companies with multiple patents, mixed income streams, or
group structures involving IP ownership and licensing, this gets technical quickly.

I handle:

The computation. Streaming method or formula approach, depending on which delivers the better result for your business. I model both before committing.

Group IP structures. Where patents are held in one entity and exploited by another, transfer pricing and intra-group licensing arrangements need to be right - both for Patent Box purposes and to avoid wider HMRC challenge.

Integration with R&D relief. Most Patent Box clients also claim R&D tax credits. The two reliefs interact - costs need to be allocated properly to avoid double-counting, and the sequencing matters. I handle both, so nothing falls
through the gap.

HMRC challenges. If an existing Patent Box claim is under HMRC review, I can assess the computation methodology and defend or restructure it.

Who Qualifies

• You hold granted UK or European patents (or patents from other qualifying jurisdictions)
• Or you hold pending patents - relief can be claimed retrospectively once granted
• Or you hold an exclusive licence to exploit qualifying patents
• You've made a significant contribution to the creation or development of the patented invention
• You generate income from the patented product or process
• You're a UK corporation tax payer

This applies across sectors: manufacturing, engineering, life sciences, pharmaceuticals, medical devices, deep tech, materials science and software companies with granted patents.

Why It Gets Missed

Most companies I work with on Patent Box have been claiming R&D relief for years but nobody mentioned Patent Box. The reasons are predictable:

• Their R&D advisor specialises in claims, not broader IP tax strategy
• Their patent attorney handles the legal side but doesn't think about tax
• Their generalist accountant knows Patent Box exists but hasn't done the computation before
• The company assumes Patent Box is only for pharmaceutical giants, not mid-market manufacturers or tech firms

If you hold patents and you're paying 25% on the profits they generate, it's worth a conversation.

How I Work

1. Patent portfolio review. I map your qualifying IP rights against your income streams to establish eligibility and estimate the potential benefit. This tells us whether it's worth proceeding before any significant time is invested.
2. Computation and modelling. I calculate the Patent Box deduction using the approach that delivers the best result, model the tax saving, and prepare the supporting documentation.
3. Implementation. I prepare the Patent Box election, document the computation methodology, and support your CT600 filing with the deduction included.
4. Defence file. Every Patent Box claim I prepare comes with a documented methodology that can withstand HMRC review. If questions arise, the answers are already on file.

For ongoing clients, I review the computation annually as patents are granted, income streams change, or group structures evolve.

Discuss Your Patent Portfolio

If your company holds patents - granted or pending - and you're not currently claiming Patent Box, or you think your existing claim could be optimised, I'd welcome a conversation.

Email: info@iptaxsolutions.co.uk
Phone: 0161 961 0096