The Patent Box scheme is a HMRC scheme for companies to apply a lower rate of corporation tax to profits from patented inventions. If successful a 10% corporation tax is applied rather than the 19% 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. Patents can take several years to be granted after searches and it’s only after award that any resulting profits are 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.