What is Patent Box?
The Patent Box is a Government scheme through HMRC that provides UK companies that hold qualifying IP rights or an exclusive IP license, and receive relevant IP income, the opportunity to benefit from a reduced rate of corporation tax on relevant profits. From 1st April 2017 this rate is 10%, which is applied to company profits from eligible patents or other qualifying intellectual property rights such as:
- Patents granted by the intellectual property offices UK IPO and EPO;
- Patents granted by the national intellectual property office of 13 EEA countries;
- Medicinal & botanical IP rights (e.g. supplementary protection certificates);
- Exclusive licences for patented inventions developed, exploited and defended by the licensee;
- Patents acquired from another company, actively managed or developed by the acquiring company.
How are the profits calculated?
Profits will be calculated using revenue streams from global sales of:
Products incorporating one or more patented inventions;
Bespoke parts used in the patented product(s);
Compensation/damages resulting from patent infringements
Licence fees, royalties or proceeds from the sale of the patent;
What will ABGI UK do for you?
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.
How much could I expect?
The Patent Box programme can offer generous savings in corporation tax. Our user-friendly calculator will estimate the tax benefit you could receive from HMRC.
*Please note that estimate of tax benefit is intended as a guide only and is in no way guaranteed. It is based on the figures you have input. Jumpstart are experts in maximising R&D tax relief benefits - please contact us to ensure you secure every last penny you’re entitled to.
Have a question?
Contact ABGI and a representative will get back to you to discuss your unique needs and explain how we can assist. Submit an enquiry or call us on
0203 984 0321