If your company is making a profit on your patented inventions, you will be eligible for a lower effective corporation tax rate of 10% on your relevant profits! – just give us a call!
What is The Patent Box Tax Relief?
In 2009, in an effort to further reward innovative companies, the UK Government announced an initiative called “the Patent Box”. This legislation gives a reduced effective rate of corporation tax to 10% for any companies making an income from patents. The relief has been phased in from 1 April 2013 and the full benefit of the Patent Box has been available from 1 April 2017.
In 2017-18, 1,305 companies claimed relief under the Patent Box, with a total value of £1,101 million. The value of relief claimed has increased year on year from 2013-14 to 2015-16 as the benefit of the Patent Box was phased in, and this continued in 2016-17 and 2017-18, however, there are still hundreds of eligible companies who have not claimed!
How The Patent Box Tax Relief Works
Your company will qualify for 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.
Qualifying income 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
Does my business qualify?
- Are you a UK limited company?
- Do you have an existing patent or are you considering applying for one?
If you answered ‘yes’ to both of these questions, it’s highly likely that you’re eligible for Patent Box Tax Relief. There’s no risk attached and the initial assessment will only take around thirty minutes of your time and if we can’t see an opportunity for you to claim on your Patent Box Tax Relief, you walk away without spending a penny.