Patent BoxTax Relief

Patent Box Tax Relief allows businesses to pay a lower Corporation Tax rate of 10% on profits arising from patented products or services.

Does your business qualify for Patent Box? 

HMRC’s Patent Box Scheme enables qualifying companies to pay a lower effective Corporation Tax rate of 10% of profits from patented products or processes.

For your business to benefit from Patent Box tax relief, there are some important conditions that must be met. 

  1. The patent must  have been granted by the UK Intellectual Property Office (IPO), European Patent Office (‘EPO’) or by the National IPO of a selected few European countries.
  2. The company must have been involved in the development of the patent. 
  3. Patent Box tax relief may be restricted if the company has not undertaken all the R&D for the patent.

What is qualifying IP?

Qualifying IP includes patents granted by the UK, by the European Patent Office and by certain, but not all, European countries.

It also includes plant breeders’ rights and certain cases where a patent would have been granted if not for the fact that the application contains information prejudicial to national security.

The company must also own or exclusively licence the qualifying IP.

Please see our detailed Patent Box Guide for full information on qualifying IP

How Radius can help you with Patent Box

Patent Box tax relief involves some quite complex calculations. The Radius team includes dedicated Patent Box experts who have gained a unique specialism in these rules ever since their introduction in 2013.

Our team submitted some of the very first claims to be made under the Patent Box tax relief regime, and we have saved clients millions of pounds in Corporation Tax since then.

Radius will lead you through this process with clarity, authority, and efficiency, quickly determining your eligibility to claim, and dealing with all relevant calculations.

What about pending patents?

If your company already has a patent pending, you may still benefit from Patent Box tax relief by making a provisional claim, with the benefits accruing whilst the patent is pending. Once the patent is granted, the tax benefit is activated.