Patent Box Tax Relief
Turn innovation into a tax advantage.
If your business develops or uses patented technology, Patent Box could reduce the Corporation Tax you pay on qualifying profits from patented inventions to an effective 10% rate. Yet, it’s one of the most overlooked opportunities available to innovative businesses.
Could your IP be worth more?
You may already have a strong R&D Tax Relief claim. But if the products, processes or technology you’ve developed go on to generate commercial profit, there could be further value to unlock.
Our specialists can help you understand whether your intellectual property qualifies, identify the profits that could benefit and support you from initial review through to implementation.
How we manage your Patent Box claim
Patent Box calculations aren’t always straightforward. Identifying qualifying income, calculating relevant IP profits and applying the appropriate R&D expenditure rules can add complexity to the process.
We take care of the technical detail, working with your team to gather the information we need while keeping the process practical and disruption to a minimum.
Eligibility assessment
We review your patents, development activity and how your intellectual property is being used commercially to establish whether your business could qualify for Patent Box Tax Relief.
Working alongside your R&D claim
If you’re already claiming R&D Tax Relief, we look at your existing R&D activity and Patent Box position together to help you understand how both incentives could support your wider innovation strategy.
IP profit calculations
We identify the relevant income and calculate the profits that could benefit from Patent Box, applying the appropriate methodology and R&D fraction where required. Learn more about how Patent Box is calculated in our guide.
Election through to implementation
From the initial review through to your Patent Box election and Corporation Tax computation, we manage the process and ensure the relevant calculations and supporting information are correctly reflected.
With 18 years of experience, our specialists bring proven tax and technical expertise to complex R&D Tax Relief and Patent Box work.
What could Patent Box mean for your business?
10%
Qualifying Patent Box profits can benefit from an effective Corporation Tax rate of 10%.
Up to 2 years
A Patent Box election must generally be made within two years after the end of the accounting period in which the relevant profits and income arose.
From patent application
Where the relevant conditions are met, profits arising while a patent application is pending can potentially be brought into Patent Box once the patent is granted.
Alongside R&D
Patent Box and R&D Tax Relief can both form part of a wider innovation incentives strategy, helping you get more value from developing and commercialising your innovation.
Is there more value in your innovation?
If you have a granted or pending patent, generate revenue from patented technology or already claim R&D Tax Relief, it could be worth taking a closer look.
We’ll start with a quick initial review to understand your intellectual property, the development work behind it and how it’s being commercialised. From there, we can establish whether your business could qualify for the Patent Box scheme and give you a clearer view of the potential benefit.
Patent Box scheme FAQs
Who can claim the UK Patent Box scheme?
A company may qualify for Patent Box Tax Relief if it owns or exclusively licenses qualifying patent rights, is subject to UK Corporation Tax and generates profits from products, processes or technologies covered by those rights.
The business also needs to meet the relevant development requirements relating to the patented invention. Our specialists can help you understand whether your intellectual property and development activity meet the requirements of the Patent Box scheme.
Is Patent Box always taxed at 10%?
The Patent Box scheme allows qualifying Patent Box profits to benefit from an effective Corporation Tax rate of 10%.
Not all company profits will necessarily qualify for Patent Box, so the benefit will depend on your qualifying intellectual property, relevant income and individual circumstances.
How much tax could Patent Box save?
The potential saving will depend on the qualifying profits your business generates and the Corporation Tax rate that would otherwise apply.
For businesses generating significant revenue from patented products or technologies, applying the effective 10% Patent Box rate to qualifying profits can provide a valuable additional benefit from their innovation.
Can Patent Box be claimed alongside R&D Tax Relief?
Yes. Where the relevant requirements are met, businesses can benefit from both Patent Box and R&D Tax Relief.
R&D Tax Relief supports qualifying research and development activity, while Patent Box can provide a reduced Corporation Tax rate on qualifying profits generated from patented innovation. We explain how the two incentives work together in more detail in our guide to the UK Patent Box scheme.
For businesses also looking to access grant funding, all three incentives can now work together under the Merged Scheme.
How does Patent Box affect R&D Tax Credit claims?
Patent Box and R&D Tax Relief are separate incentives, but the R&D activity and expenditure associated with your patented technology can be relevant when calculating Patent Box relief.
Already claiming R&D Tax Relief? If so, our specialists can look at your existing R&D activity and Patent Box position together to help you understand how the two incentives could work as part of your wider innovation strategy.
How do companies claim Patent Box relief?
To benefit from Patent Box relief, a company must elect into the Patent Box scheme and include the relevant calculation as part of its Corporation Tax position.
Calculating qualifying Patent Box profits can be complex, so our R&D tax specialists can support you from the initial eligibility review through to the Patent Box election and implementation.
Can Patent Box apply while my patent is pending?
Patent Box relief generally applies once the relevant patent has been granted. That said, where the relevant conditions are met, profits generated while a patent application is pending can potentially be brought into Patent Box once the patent is granted.
Learn more about Innovation, Patents & R&D
R&D Tax Credits explained
Innovation Funding Options
Patent Box Scheme Guide
Ready to discuss your unclaimed Patent Box tax relief?
Complete the form to request a call from one of our consultants or click here to send us a message.