Patent Box is a scheme which enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions and certain other innovations.
The relief is phased in, starting from 1 April 2013 and the lower rate of Corporation Tax which is applied is 10%.
By 1st April 2017 100% of relevant profits will benefit from this lower rate of Corporation Tax. To benefit from this scheme companies must be:
- Liable to Corporation Tax
- Make a profit from patented inventions
- Own or exclusively licence in the patents
- If a company is a member of a group, it may qualify if another company in the group has undertaken the qualifying development.