Patent Box

Introduction to Patent Box


The Patent Box scheme is administered by HMRC and is designed to reward innovative companies and incentivise them to keep their intellectual property (IP) in the UK. The benefit is a reduction in corporation tax on profits resulting from qualifying IP income to 10%. Even if the patented element of the product or process is small, 100% of the worldwide profits arising from qualifying IP income should qualify for the 10% Corporation Tax rate.


Corporation Tax is due to increase from 19% to 25% from 1 April 2023 for companies with profits over £250,000. Smaller companies are also affected where profits between £50,000 and £250,000 will see a tapered increase in Corporation Tax between 19% and 25%. So, in the future Patent Box will provide an even greater benefit.


To access Patent Box, you need to be a UK limited company paying UK Corporation Tax. You need to have developed an innovative product or process, filed a patent application, and generated profits relating to that patented invention. Many companies don’t think that they can patent their IP. Or they think that the patenting process is too costly or takes too much time to be worthwhile.


We work with a specialist partner to offer an IP Harvest to answer the question “Does my business have something worth patenting?” This is a fixed-fee service that quickly and simply assesses the potential of your IP. Helping you focus on the commercial benefit of finding a patentable idea so that you can access Patent Box and save on Corporation Tax.


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If you would like to find out how we can help you or your business please call us now.