What is the Patent Box?

Posted by Hazel Duhy on in Sector Group News, Business Support Group, Member News.

What is the Patent Box?

The Patent Box tax relief is the Government’s way of rewarding companies that are driving innovation. The aim is to encourage the development of new patented inventions in the UK. If your company is making a profit on your patented inventions, you will be eligible for a lower effective corporation tax rate of 10% on your relevant profits. This will save your company money and allow you to invest in future innovation.

If you’re a UK company with patented inventions, you will qualify for the Patent Box tax relief.
Opting in to the Patent Box means you can benefit from an effective tax rate of just 10% on your relevant profits – the normal corporate tax rate is 19%!

The average benefit for large companies is £2m!

If you are eligible for the Patent Box tax relief, it is likely that you are also eligible for R&D tax relief. Catax (a BECBC member) has a team of specialists here to help – just give us a call!
Paul Crooks         07901 852950
Nigel Holmes      07752 732958