The Patent Box

If your company has a patented invention, you may be eligible for Corporation Tax relief on profits earned after 1st April 2013.

You could benefit from a lower rate of 10% on profits from the sale of patented products for 20 years if:

  • Your company owns the patent or has a licence over it which is at least exclusive to the UK
  • Your company has undertaken qualifying development for it by making a significant contribution to either:
    • The creation or development of the patented invention
    • A product incorporating the patented invention.

You could also benefit from the Patent Box if you use a manufacturing process that is patented or you provide a service using a patented tool.

Applying for tax relief

Tax relief on patented inventions won’t automatically be applied; instead, you have to elect to benefit when you submit your company’s Corporation Tax return - and because it comes into effect in April 2013, it is important to start planning for it as soon as possible.

Patent Box relief is closely linked to R&D tax relief and specialist advice could prove invaluable to make sure that your company benefits fully from the tax relief available.

We can help you establish whether profits from your patented invention could produce tax benefits and work with you to help boost qualifying profits.

 

We have considerable knowledge of the processes and legislation surrounding the Patent Box initiative. If you think you have an invention that might qualify for tax relief, speak to one of our specialists on 01926 407611.