Patent Box

Reduce Corporation Tax on income from patented innovations

Innovative businesses can significantly reduce their Corporation Tax liabilities through the Patent Box regime, which allows qualifying profits generated from patented inventions to be taxed at an effective rate of 10%.

However, determining eligibility and calculating the relief can be complex. The rules require businesses to identify qualifying income streams, understand patent ownership and development arrangements, and consider how Patent Box interacts with other innovation incentives such as R&D tax relief.

Our specialist team helps businesses identify opportunities, maximise available relief and prepare robust claims with confidence. Whether you are considering Patent Box for the first time or reviewing an existing claim, we can help you navigate the rules and unlock the value of your innovation.

Patent Box is not simply a tax calculation. It requires an understanding of how innovation is developed, protected and commercialised within a business.

Our team has extensive experience advising innovative companies across a range of sectors. We work closely with finance teams, technical specialists and business leaders to identify qualifying profits, optimise available relief and ensure claims are supported by appropriate documentation.

We take a practical, commercially focused approach, helping businesses:

  • Maximise tax savings from qualifying patented innovations
  • Align Patent Box claims with R&D tax relief strategies
  • Navigate complex patent ownership and licensing arrangements
  • Manage risk and respond to HMRC queries
  • Integrate Patent Box into wider Corporation Tax planning

Our aim is to make the process efficient, straightforward and tailored to your business.

How we can help

  • Patent Box eligibility reviews
  • Assessing qualifying profits for Patent Box purposes
  • Calculating Patent Box relief
  • Patent Box elections and claims
  • Patent ownership and licensing structures
  • Patent Box and R&D Tax Relief planning
  • Corporation Tax planning for innovative businesses

Frequently Asked Questions

Patent Box is a Corporation Tax relief that allows companies to apply a reduced rate of tax to profits generated from qualifying patented inventions.

Yes. Many innovative businesses can benefit from both Patent Box and R&D tax relief. As the rules are different and the reliefs interact, it can be very beneficial to consider them together to maximise the overall benefit available.

Not always. Businesses may qualify where they exclusively licence qualifying patents, subject to meeting the relevant conditions.

Businesses should consider Patent Box as soon as qualifying patents are granted. Early planning can help maximise the relief available and ensure the necessary information is captured efficiently.

The amount of relief depends on the level of qualifying profits generated from patented inventions. For many innovative businesses, Patent Box can result in substantial Corporation Tax savings and improve returns on innovation investment.

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