What is Patent Box?

The Patent Box scheme was introduced in 2013. It is a scheme for companies to apply a lower rate of corporation tax to profit from patented inventions. If successful a 10% corporation tax is applied rather than the 19% standard tax rate.

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

Who can Qualify?

Patent Box benefits are available to the legal owners of patents and 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. Patents can take several years to be granted after searches. Only after award are any resulting profits eligible for Patent Box.

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.