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Patent Box Tax Relief for Aerospace and Defence Companies
The Patent Box scheme is very generous. It allows eligible companies to apply a reduced rate of corporate tax (10% as opposed to the current 25%) to profits derived from the sale of products or services containing a qualifying patented innovation or IP – resulting in increased cash flow and improved financial performance. This encourages innovation and investment in R&D, as companies can enjoy significant tax advantages when commercialising their patented inventions.
The Patent Box also promotes the protection of intellectual property rights, as it incentivises companies to actively pursue patents and safeguard their valuable innovations.
Overall, the Patent Box is a powerful tool for aerospace and defence companies to maximise the value of their intellectual property, drive competitiveness, and stimulate further technological advancements within the industry.
Are you a UK-based company
that pays UK Corporation Tax? To qualify for the Patent Box scheme, first of all, you must be
a UK limited company and be paying UK Corporation Tax.
Do you hold qualifying intellectual property rights, such as granted patents or exclusive licenses for patented inventions? These patents must be granted by the UK Intellectual Property Office, the European Patent Office, or certain other specified countries.
Have you undertaken qualifying development activities related to the patented inventions? This includes activities like conducting research, designing, and developing the patented technology or its applications.
Are you actively involved in exploiting the patented technology by actively licensing it, selling products incorporating the patented technology, or using the patented technology to generate income?
We will assist in compiling and assessing associated costs and tracked profits from relevant patent protected products, and advise on:
✅ The implications of existing R&D eligible expenditure on calculation of relevant IP income;
✅ Managing corporation tax benefits of the combination of both R&D tax relief and Patent Box schemes;
✅ On-going legislative changes & impact on current or future patent box claims;
✅ We will prepare the Patent Box report and associated calculation for inclusion in your tax return.
View our Patent Box page to find out more.
