Patent Box

Available to companies owning or exclusively licensing patents, the Patent Box is a generous tax incentive offering a low rate of 10% corporation tax on profits derived from those patents.

How does it work?

The Patent Box scheme is broad in its scope. Products only need to be protected by one patent, which could cover a very small part of the whole, for all the profits derived from the entire product to be eligible for the low tax rate. Patented processes can also qualify for the scheme’s benefits.

Obtaining a patent is often a lengthy process and the scheme recognises this by generously allowing profits derived during the six years before a patent is granted to be eligible.

The Patent Box may be accessed by companies at the same time as claiming R&D tax credits and ensures that innovative companies are rewarded with cash tax savings, even when their R&D activities on a particular project have ceased.

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How we help

We specialise in assessing eligibility for the scheme, preparing documentation for companies to support their Patent Box elections and agreeing elections with HMRC. Calculation of the Patent Box benefit can be a complex task, involving the application of transfer pricing principles, all of which we have considerable experience in delivering.

We are well-connected with patent attorneys across the country and can work with them to understand whether a product is adequately patent-protected. Our legal teams in the wider Gateley group are experts in drawing-up exclusive licences, meaning we can support you throughout the process.

Start the process

We offer a complimentary consultation to discuss your company’s eligibility for the Patent Box scheme. To find out more, please contact Peter Jelf, Head of R&D Tax Incentives on 0121 212 7929 or peter.jelfs@gateleycapitus.com.

Speak to the team

Peter Jelfs

Head of R&D Tax Incentives

Specialisms:

  • R&D tax credit claim preparation, including negotiation and agreement with HMRC
  • Preparation of Patent Box elections

+44 (0) 121 212 7929

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