Patent box

Patent Box tax relief only applies to profits that are directly linked to your patented inventions or products and processes that incorporate them. It requires a detailed patent box calculation to identify these profits and apply the reduced tax rate.

Yes – many businesses use both tax incentives in combination. R&D tax relief reduces the cost of R&D activities, while Patent Box relief rewards the successful commercialisation of innovation. It’s a powerful way to support both innovation and long-term profitability.

You must elect into the Patent Box by making an election in your company’s tax return. This needs to be done within two years of the end of the relevant accounting period. We can help make sure your election is made correctly and on time as part of claiming Patent Box.

It can be. The Patent Box calculation involves identifying income linked to qualifying IP, excluding certain routine and marketing profits, and applying an R&D expenditure fraction. This ensures the reduced tax rate applies only to profits from innovation you’ve actively developed. Our experts can manage this process for you.

You can only claim Patent Box once your patent applications are granted. However, you can elect into the regime earlier. So when your patent is granted, you can claim for the relevant profits earned while the application was pending (subject to certain conditions).

The Patent Box regime is open to any company paying UK corporation tax that holds qualifying IP and meets the eligibility criteria. Many SMEs across sectors benefit from the scheme. It encourages companies of all sizes to develop and retain intellectual property in the UK.

Patent Box tax relief applies to patents granted by the UK Intellectual Property Office, the European Patent Office, and certain other EEA national offices. Other international patents do not qualify under the UK box regime. In addition, rights similar to patents such as Plant Variety rights and Marketing Authorisations can also qualify.