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