Rosie Hardy
Director, Patents
Patent Box
We can help you leverage the Patent Box tax relief scheme and access what you’re entitled to
We help innovators maximise the Patent Box
Having advised clients on the Patent Box scheme since its introduction in 2013, we provide tailored, strategic advice on unlocking existing and potential opportunities for your business.
Working alongside accountants, we’ll help you to identify qualifying patents. We’ll also identify processes or technology advances which, once protected, will allow you to benefit from the scheme.
What is the Patent Box scheme?
The Patent Box system is a UK government tax incentive which allows qualifying companies to substantially reduce corporation tax on profits attributable to their patented inventions, from the headline 25% figure to 10%.
The legislation was designed to incentivise companies to locate their research and development activities in the UK and protect the resulting IP with a patent.
Patent Box enables companies to benefit from their investment beyond the initial commercialisation of the innovation. These tax savings can be turned into company equity, increasing your asset value and market defensibility.
We protect: research & development innovation
With headline corporation tax now at 25% in the UK, the 15% benefit gap offered by the Patent Box is substantial. Understandably, access is strictly controlled. To qualify, a company must:
- Own, be the applicant for, or have exclusive licensee rights to the patents concerned.
- Earn qualifying profits relating to those patents
- Have made a significant contribution to the development or management criteria of the intellectual property involved.
How does a business claim Patent Box tax relief?
A company must elect to benefit from the preferential rate within two years of the relevant accounting period. This is done in the calculations accompanying the company tax return, or separately in writing.
A streamlined, strategic approach to Patent Box relief
By identifying your most profitable products first, we can engineer a patent strategy specifically designed to trigger maximum tax relief – the Patent Box flip.
Some companies miss out because they think their improvements are too ‘trivial’ to patent, but even minor tweaks can produce valuable savings. If a modification improves performance or manufacture, it can unlock the 10% rate.
We advise you at every stage to ensure your IP is perfectly positioned to meet strict HMRC criteria.
If you have elected into the scheme while a patent application is pending, the tax relief can be backdated for up to six years of profits once the patent is granted.
Sector-specific expertise & integrated advice
Established in 1975, we have built an extensive IP network with global jurisdictional reach, offering direct representation before multiple national and regional IP offices.
From automotive, engineering and energy to life sciences and technology, we bring deep industry insight across many R&D-intensive sectors.
We are recognised across the world’s leading IP ranking reports and have been named in Financial Times’ list of Europe’s Leading Patent Law Firms for seven consecutive years.
This means that, as well as Patent Box strategy, we are perfectly positioned to advise you on all aspects of your IP portfolio management.
Contact an expert
Take full advantage of the Patent Box scheme. We’ll help you streamline the process and gain tax incentives for your innovations.
