Patent Box Services
The UK Patent Box is a very generous, but under claimed relief which was introduced into the UK in 2013. It was introduced to incentivise companies to retain and commercialise existing patents, and to develop new innovative patented products. It does this by taxing the profits generated from qualifying patents at a reduced rate of 10%.
Our specialist team will carry out the complex calculations needed to determine the amount available for patent box relief. Where a claim is available, a deduction is claimed in the company’s tax computation to give an effective tax rate on qualifying intellectual property profits of 10%. This represents a significant tax saving when compared to the current rate of corporation tax.
The Patent Box rules were amended on 1 July 2016, although grandfathering provisions will apply until 30 June 2021. The main change was to add a link between the patent on which the relief is being claimed and the company carrying out the R&D. Our experienced team will carry out the additional work required in calculating the relief available.
A beneficial aspect of the relief is that it applies to profits from the worldwide sales of patented products, even if the patent only applies to a small part of the total product. It can also apply where patents have been acquired, but there are some additional conditions to meet and the relief may be restricted under the revised rules.
