Specialists In R&D Cost Recovery
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Corperate Industry

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.

What is the patent box?

Patent box is a preferential tax scheme for profits arising from patents.
The patent box allows attributable profits to be taxed at a lower rate which is calculated. The scheme has been brought into effect for profits received from April 2013 and, as with the R&D Tax scheme, can be applied retrospectively for up to two tax periods.

What is the purpose of the scheme?

The scheme has been devised to encourage technological innovation within UK based businesses. Working alongside the R&D Tax Credit scheme, the scheme enables companies to benefit from protecting IP gained. The scheme encourages businesses to locate high-value jobs and activities associated with technically innovative work within the UK.

What are attributable profits?

Attributable Profits are profits arising from items which are patented, contain an intrinsic patented item, or received via licensing of a patent. This applies to existing patents and patents pending, however the benefits cannot be realised until the patent is granted.

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Chemical

A chemicals and development company, specialising in the distribution of Polymers and Additives. Claim Value £335,800.

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Energy and Waste

A waste management company working nationally in materials reclamation, waste and processing. Claim Value £24,780.

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Construction

Structural design, manufacture for light gauge frame and structural steelwork solutions across ranges of construction projects.