Patent Box Tax Relief

Your company could benefit from an effective Corporation Tax rate of just 10% on profits generated from patented inventions through the UK Patent Box scheme.

For innovative UK businesses, the Patent Box scheme can unlock significant tax savings and reward the commercial success of your IP (intellectual property).

What is Patent Box?

The UK Patent Box scheme is a government tax incentive that allows companies to pay a reduced Corporation Tax rate of 10% on profits generated from patented products, processes, and technologies, rather than the standard Corporation Tax rate.

For businesses investing in innovation, Patent Box Relief can significantly reduce the tax paid on successful products while rewarding long-term R&D investment. Businesses already claiming R&D Tax Credits may also benefit from Patent Box once their patented technologies begin generating profit.

male and female tax relief colleagues walking in office

male and female colleagues sat across from each other at a desk in a corporate office

Is your business eligible?

Your company may qualify for Patent Box Relief if:

You own or hold an exclusive licence to use qualifying patents
Your business is liable for UK Corporation Tax
Your business earns profits from patented products, processes, or royalties
You have undertaken qualifying development work related to the patented invention

Many businesses are surprised to discover they qualify for Patent Box tax relief. Even if patents are just one part of your operations, you could still be rewarded.

How we manage your Patent Box claim

Navigating the Patent Box rules can be complex, particularly when calculating qualifying profits and ensuring compliance with HMRC requirements. Our specialists handle the entire process from start to finish, allowing you to focus on innovation and growth.

Eligibility Review

We assess your patents, development activity, and commercial use to determine whether your business qualifies for Patent Box tax relief.

Claim Calculation

We calculate the relief you are entitled to, ensuring nothing is overlooked

HMRC Submission

We handle the Patent Box election and tax computation on your behalf, ensuring compliance with HMRC regulations while minimising administrative burden.

Combined Benefits

If you are already claiming R&D Tax Credits, we ensure your Patent Box claim works effectively alongside your existing innovation incentives to maximise overall tax savings, without creating conflicts between the two schemes.

With two decades of experience and a proven track record, we’ve helped businesses save hundreds of millions through R&D Tax Relief and Patent Box claims.

Speak to an expert

If your business holds patents, the Patent Box scheme could reduce your Corporation Tax to just 10% on qualifying profits from patented innovations.

Our specialists will assess your eligibility, estimate potential tax savings, and guide you through the claim process.

Get in touch today for a free consultation and find out how much your business could save through the UK Patent Box scheme.

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Patent Box scheme FAQs

Who can claim the UK Patent Box scheme?

A company may qualify for Patent Box Relief if it owns or exclusively licenses a qualifying patent, is subject to UK Corporation Tax, and earns profits from products, processes, or technologies covered by that patent. The business must also have contributed to developing the patented invention.

Is Patent Box always taxed at 10%?

The Patent Box scheme applies an effective 10% Corporation Tax rate to qualifying profits from patented inventions, regardless of whether your business pays 19% or 25% Corporation Tax on other profits.

How much tax can Patent Box save?

The Patent Box scheme allows qualifying profits from patented inventions to be taxed at 10% instead of the standard Corporation Tax rate. For businesses generating significant revenue from patented products or technologies, this can result in substantial tax savings. For example, many businesses currently pay Corporation Tax of up to 25% on profits, meaning Patent Box can significantly reduce the tax paid on qualifying income.

Can Patent Box be claimed alongside R&D Tax Credits?

Yes. Many innovative businesses benefit from both incentives. R&D Tax Credits typically support the development stage of innovation, whereas the Patent Box scheme rewards companies once they begin generating commercial profit from patented technologies. We explain how the two incentives work together in more detail in our guide to the UK Patent Box scheme.

How does Patent Box affect R&D Tax Credit claims?

Patent Box and R&D Tax Credits can be claimed together, but they must be structured correctly to ensure both incentives are optimised. Understanding how R&D Tax Credits are accounted for can help ensure your Patent Box claim is accurate and aligned with HMRC requirements.

How do companies claim Patent Box relief?

To claim Patent Box Relief, a company must elect into the Patent Box regime and include the relief calculation in its Corporation Tax return. Since calculating qualifying profits can be complex, many businesses work with specialists to ensure the claim is accurate and maximised.