What is 'Patent Box'

The Patent Box is an in initiative lead by the UK Government to reward and incentivise innovative companies. If it is said that R&D Tax Credits provide and incentive for companies to innovate, then it can also be said that The Patent Box provides an incentive for them to commercialise their successful innovations.

Under this legislation, companies that make an income from their patents can benefit from a reduced effective rate of corporation tax of just 10%. This benefit can be very significant and should be explored by any company to whom The Patent Box applies.

Does it apply to my company?

Your company will qualify for The Patent Box tax relief if:

  • You own patents, or
  • You own an exclusive licence to exploit a patent
  • It’s a UK, specific EEA country or EU patent
  • There are no other IP – not trademarks, designs, copyrights etc.
  • The benefit that your business receives is based on 'qualifying income'. This includes:
  • Sale of patented items or those that incorporate a patent
  • Licence fees
  • Proceeds from sale of patents
  • Compensation income from infringement of owned rights

Sounds interesting, tell me more!

This is an extremely complicated area of tax, but thankfully for you our Chartered Tax Advisor partner can do all the 'heavy lifting' in this regard! Contact Help2Grow today for a free consultation.

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