The Patent Box

What is the Patent Box?

The Patent Box scheme is an HM Revenue & Customs (HMRC) incentive, offering companies to apply a lower rate of Corporation Tax to profits earned after 1st April 2013 from patented inventions. If successful the lower rate of Corporation Tax applied will be 10%, far less than the standard tax rate.

It is worth pointing out this lower corporation tax rate is in addition to claiming R&D tax credits. At Easy R&D we can help process both claims on your behalf.

Who can Qualify?

The benefits of the Patent Box are available to the legal owners of patents and also to those holding an exclusive licence to exploit a patent commercially. The licence can be worldwide or can be limited by field or territory, provided that it still results in effective market exclusivity.

Companies can also use the Patent Box where they are entitled to receive patent income or exploit a patent that has been developed under a partnership, joint venture or cost-sharing arrangement, provided the parties to that joint arrangement own the patent or hold an exclusive licence.

To find out more, contact one of our experts for a no-obligation chat.