Who and what qualifies for the Patent Box regime
Patents can only qualify if they are granted by the UK Intellectual Property Office, the European Patent Office, or specified EEA countries. The regime notably excludes patents granted by patent offices in France, Spain, Italy, the US, and Japan.
The benefit of the Patent Box is available through legal ownership of the patent or through holding an exclusive licence to commercially exploit a patent.
The regime can apply to existing, newly granted or acquired patents, however the UK claimant company must have had, or intend to have, a significant involvement in development of the patented invention, or a product incorporating the patented item. If this development condition is only met because of activities of another group company, the claimant company must also actively manage its portfolio of qualifying patent rights. This may include activities such as protecting the patent, researching alternative applications for the patent or licensing others to use the patent.
Our specialist team will review all aspects of existing and newly acquired patents to establish if they qualify for the relief.
How to claim
An election into the Patent Box regime must be made by the company within two years after the end of the relevant accounting period in which relief is claimed. A company can elect in early, before a patent has been granted, to enable the company to claim tax relief on qualifying profits generated in the period from filing the patent application and the patent grant – the patent pending period. The accumulated relief is claimed in the tax return for the year the patent is granted.
What Onyx can do for you
The Patent Box may be complex but the savings can be substantial. In order to maximise the benefit of the regime, it is worthwhile taking the time to consider the issue now.
We can help review your patents, pending patents and development activities to determine whether or not they fall within the UK Patent Box Regime and advise you on how Patent Box relief can be claimed in your tax returns.