Patent Box Relief

Learn if you qualify and see how much you could receive

Understanding

Patent Box

The Patent Box incentive was introduced over four years (2013-2017) in phases to encourage UK businesses to commercialise intellectual property within the UK. The patent box relief allows eligible companies to apply a lower rate of Corporation Tax (10%) to profits generated from its patented inventions.

Who can benefit from Patent Box Relief:

In order for your company to qualify for Patent Box, you must meet certain eligibility criteria:

  • Your company will need to be profitable from exploiting of patented invention(s)
  • The company is liable to Corporation Tax.
  • The company has undertaken qualifying development on the patented invention(s).
  • The company must own or have the exclusive licence of the patented invention(s).
  • The company has elected for Patent Box (via computations accompanying a CT Return or separately in writing), within 2 years of the accounting period in which the relevant profit and income arose.

What makes a patent eligible for Patent Box:

In order for your company to benefit from the Patent Box, your company must own or exclusively licence in patents granted by:

  • The UK Intellectual Property Office.
  • The European Patent Office.
  • These countries in the European Economic Area: Austria, Bulgaria, Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Poland, Portugal, Romania, Slovakia, Sweden

 

Following the announcement in the 2021 Spring Budget that from 1st April 2023 the CT rate will increase up to 25% for companies with profits over £250,000, the Patent Box will become more important to UK businesses developing and exploiting patented inventions.

How can Counting King help?

Counting King can assess your existing IP portfolio to identify whether there are patented inventions (products or processes) that would qualify for Patent Box. Following the identification of eligible inventions, we will work with your accountant to stream the income and costs relating to each of the qualifying patented inventions. Furthermore, we will then proactively advise on the future streaming and tracking required to continue to benefit from the Patent Box.

Identify: Encouraging companies to create and commercialise more Intellectual Property within the UK.

Patented Licence: Once your patent application has been successful, you will be able to claim a lower tax rate on profits generated from exploiting your patented inventions.

Lower Rate: Pay the lower 10% Corporation tax on profits generated from exploited patented inventions.

How Much Tax Relief Can I Get?

Your Tax Relief

Identify

Encouraging companies to develop and create more patented commercialised products in the UK.

Patent License

Once you have registered your products IP you will be able to exploit the Patented invention’s right to be taxed at a lower rate.

Lower rate

You are able to enter into the lower rate of 10% of Patent Box corporation tax.

What we do

Our Services

Counting King is a national chartered tax practice that helps companies with Grants, Tax Relief Incentives and Investment. The main aim is to scale and help grow innovative companies in the UK who are looking to disrupt their industry with a commercially viable technology, product, or process.  We can do this by utilising the vast array of Tax Reliefs, Accessing Grants, and looking at Investment within the relevant sectors. Helping you to get an injection of cash into your business can not only strengthen your business but also secure the longevity of the project.

For help or advice please contact us:

Get In Touch !

We operate nationwide for a range of services and would love to help if possible.

Our highly trained consultants and analysts will look after you and all of your referrals so well, they will thank you for introducing us!

 

0161 667 5069

info@countingking.co.uk

Magnetic House, Salford, M50 3XW

Download our R&D Tax Relief Information

Learn about the process of claiming Research and Development Tax Relief