Patent
Box
tax
reli
e
f
guid
e
Patent
Box
profits
taxed
at
10%:
w
h
y
y
o
u
should
a
c
t
now.
What
is
the
Patent
Box?
T
h
e
Patent
B
o
x
i
s
a
preferential
t
a
x
regime
f
o
r
U
Kcompaniesthat
w
a
s
introduced
from
1
April
2013
a
n
d
allows
relevant
profits
attributable
t
o
patentsand
certain
formsof
Intellectual
Property
(IP)
t
o
b
e
taxed
a
t
10%.
T
h
e
main
rate
o
f
corporation
t
a
x
i
n
t
h
e
U
Kwill
b
e
increased
from
t
h
e
current
1
9
%
t
o
2
5
%
from
1
April
2023
meaning
i
t
isan
opportune
time
t
o
consider
i
f
your
company
could
qualify
f
o
r
t
h
e
Patent
Box.
Y
o
u
c
a
n
qualify
i
f
y
o
u
sell
o
r
enjoy
income
arising
from
existing
o
r
n
e
w
patents
granted
b
y
t
h
e
UKpatent
office,
t
h
e
European
Patent
Office,
o
r
b
y
patent
offices
i
n
certain
other
E
E
A
states,
however,
U
S
A
patents
will
n
o
t
count
.
T
h
e
government’s
a
i
m
f
o
r
t
h
e
Patent
B
o
x
i
s
t
o
provide
a
n
additional
incentive
f
o
r
companiesto
retain
a
n
d
commercialise
existingpatents
a
n
d
t
o
develop
n
e
w
innovative
patented
items.
Thisshould
encourag
e
companiest
o
locat
e
high-value
jobs
associated
with
t
h
e
design,
development,
manufacture
a
n
d
exploitation
o
f
patentsin
t
h
e
UK.Virtually
a
l
l
o
f
t
h
e
companies
that
benefit
from
t
h
e
Patent
Box,
will
also
b
e
able
t
o
make
a
claim
f
o
r
Research
a
n
d
Development
(R&D)
t
a
x
credits,
a
s
t
h
e
t
w
o
g
o
hand-in-hand
t
o
generate
significant
corporation
t
a
x
savings
f
o
r
innovating
here.
Incom
e
fro
m
worldwid
e
sale
s
qualifies
f
o
r
Patent
B
o
x
a
n
d
qualifying
profits
b
y
t
h
e
legal
owner
o
r
t
h
e
exclusive
licensee
o
f
t
h
e
patent
a
r
e
taxed
a
t
10%from
t
h
e
date
o
f
grant.
T
h
e
company
also
h
a
s
t
o
make
a
significant
contribution
t
o
t
h
e
creation
o
r
development
o
f
t
h
e
patented
item.
Asan
application
f
o
r
a
patent
c
a
n
take
a
long
time
t
o
process,
t
h
e
t
a
x
relief
also
extends
t
o
profits
earned
from
exploiting
t
h
e
patent
u
p
t
o
sixyears
prior
t
o
t
h
e
actual
date
o
f
grant
o
f
t
h
e
patent.
Thismeans
that
y
o
u
would
need
t
o
a
c
t
n
o
w
t
o
g
e
t
a
patent
granted
a
n
d
benefit
from
t
h
e
10%tax
rate
i
n
t
h
e
2023-2024financial
year
when
t
h
e
profits
would
otherwise
b
e
subject
t
o
25%corporation
tax.
Protection
b
y
a
registered
patent
will
normally
last
f
o
r
2
0
years,
and
s
o
t
h
e
initial
Patent
Attorney
costs
o
f
obtaining
t
h
e
patent
give
a
long-term
commercial
benefit
a
s
well
asthe
opportunity
t
o
earn
significant
sums
a
t
t
h
e
lower
1
0
%
rate
o
f
tax.
Although
y
o
u
might
have
decided
n
o
t
t
o
registeryour
n
e
w
technologiesin
t
h
e
past,
the
15%lower
corporation
t
a
x
rates
m
a
y
make
t
h
e
cashflow
benefits
even
more
attractive.
I
f
y
o
u
have
historically
just
bought
a
n
d
sold
other
people’sproducts,
then
n
o
w
m
a
y
also
b
e
a
good
time
t
o
consider
developing
your
o
w
n
product
range
in-house.
T
h
e
P
a
t
e
n
t
B
o
x
r
e
g
i
m
e
a
l
s
o
a
p
p
l
i
e
s
t
o
certai
n
othe
r
qualifyin
g
I
P
rights
,
suc
h
a
s
marketin
g
authorisatio
n
rightsin
respect
o
f
a
product
that
benefitsfrom
‘marketing
protection’
o
r
‘data
protection’;
t
h
e
rights
relating
t
o
human
a
n
d
veterinary
medicinesan
d
bot
h
plan
t
breedin
g
a
n
d
plant
variety
rights.
Qualifyin
g
Paten
t
B
o
x
income
comprises:
•
income
from
t
h
e
sale
o
f
items
protected
b
y
a
qualifying
I
P
right
that
hasbeen
granted
t
o
t
h
e
company.
Fora
patent,
t
h
e
item
will
b
e
t
h
e
invention
claimed
i
n
t
h
e
paten
t
(qualifyin
g
item
s
•
income
from
t
h
e
sale
o
f
products
incorporating
o
n
e
o
r
more
qualifying
items
that
a
r
e
physically
part
o
f
t
h
e
larger
item
a
n
d
a
r
e
intended
t
o
b
e
s
o
f
o
r
i
t
s
operating
life
•
income
from
t
h
e
sale
o
f
itemsthat
a
r
e
wholly
o
r
mainly
designed
t
o
b
e
incorporated
into
qualifying
items,
such
a
s
bespoke
spare
parts
•
licence
feesand
royaltiesfrom
qualifying
I
P
rights
•
p
r
o
c
e
e
d
s
f
r
o
m
t
h
e
s
a
l
e
o
f
q
u
a
l
i
f
y
i
n
g
I
P
r
i
g
h
t
s
o
r
o
f
a
n
exclusiv
e
licenc
e
•
damagesfor
infringement
o
f
t
h
e
company’s
qualifying
I
P
rights
•
other
compensation,
such
a
s
income
received
b
y
w
a
y
o
f
insurance
from
qualifying
I
P
rights.
UHY
Chester
R&D
tax
Claims
