What is the Patent Box?

The Patent Box is a UK tax incentive introduced in April 2013 that can reduce a company’s corporation tax rate to 10% on worldwide income derived from qualifying patents

It can apply to all company sectors and sizes.

The key overarching requirements are:

  1. Is your company subject to UK corporation tax?
  2. Does your company hold one or more qualifying patents?

A company can reduce its corporation tax bill by 50% on worldwide income derived from qualifying patents under the Patent Box

This UK Government tax incentive is designed to support innovative, intellectual property-rich companies as they in turn support high value jobs and investment

The Patent Box tax incentive builds upon and compliments the enhanced R&D tax relief incentive which supports companies of all sizes during the development stage – the Patent Box aims to provide a financial boost to companies during the commercial exploitation phase

We can guide you through the entire process from initial advice to preparing and ultimately filing your Patent Box claim. We can work alongside your accountant so there’s no need to unsettle your long term relationship

Finally, we can work on a % of the tax savings so there is no cost outlay or risk for you in working with us

hmrc patent box stats 2016-17
Patent Box

Patent Box claims increase (but not by much…)

HM Revenue & Customs (‘HMRC’) has released its latest statistics for Patent Box claims filed in the year 2016-17. The HMRC report was issued in October 2019 and you can download the full version of the report here but here are the key findings: Patent Box Key Statistics (2016-17) 1,170 companies claimed relief under the Patent Box the total value of patent box relief claimed was £1,035million 31% of the claimant companies were classified as ‘Large’ but these companies accounted for 95% of all relief claimed 55% of the claimant companies were in the Manufacturing sector (including pharmaceuticals) Highest number

Read More »
Patent Box Deadlines Loom
Patent Box

Patent Box – Deadlines loom

The Patent Box is a valuable UK corporation tax relief that aims to incentivise UK companies to invest in knowledge-intensive activities that generate valuable intellectual property that is protected under qualifying patents. The tax break allows companies to benefit from a reduced rate of corporation tax on profits attributable to the qualifying patents. The Treasury recently announced that it had seen a positive uptake of the Patent Box since its introduction in April 2013, with 639 companies receiving a benefit totalling £335m so far. However, within the same timeframe this tax relief has unfortunately come in for its fair share of ‘stick’

Read More »
Patent Box

Learn some Patent basics with Appleyard Lees

Here we share an interview we carried out with Ean Davies and Simon Bradbury of Appleyard Lees, European Patent and Trademark attorneys. This interview is intended to be a ‘primer’ for those considering patents as it covers the basics around: what rights do patents offer? how do you apply for a patent? what is the process for a patent being granted? strategies for protecting intellectual property? how you might benefit for funding for your patent? common errors and where a patent might not be appropriate We hope you enjoy it and please leave comments or questions – we may be

Read More »
R&D tax credits on the increase
Patent Box

UK Patent Box: Tick the box by 2016

The UK Patent Box regime has been hit by criticism from other EU nations (particularly Germany) since its introduction in April 2013. It looks like George Osborne has finally heeded to pressure at the most recent G20 conference and agreed a compromise agreement to tighten up some of the rules around this attractive UK tax relief. It appears that the UK Patent Box – currently offering a 10% corporation tax rate on worldwide profits generated from qualifying patents – will be revamped into a new Patent Box incentive that is more closely aligned with the jurisdiction of the underlying economic risk

Read More »