The Patent Box enables companies to apply a lower rate of Corporation Tax to profits earned after 1st April 2013 from its patented inventions.
The Patent Box is designed to encourage companies to keep and commercialise intellectual property in the UK. It allows companies to apply a lower rate of Corporation Tax to profits earned from its patented inventions.
Companies must elect into the Patent Box to apply the lower rate of Corporation Tax which is 10%. This relief was introduced in phases from 2013 up until 2017.
This guidance only refers to patents. but if your company holds certain other medicinal or botanic innovation rights it can also take advantage of Patent Box benefits.
Who can benefit
You can only use the Patent Box if your company:
- is liable to Corporation Tax
- makes a profit from exploiting patented inventions
- owns or has exclusively licenced-in the patents
- has undertaken qualifying development on the patents
Answers to your Patent Box questions
There is a Specialist Incentive and Relief team which can help you with Patent Box questions. You can contact them, putting Patent Box as the subject of the email:
- before making a claim
- while you are putting together your claim
If HMRC Large Business handles your company’s tax affairs, you should contact your customer compliance manager.