Patent Box – UK Tax Relief for Patented Products and Processes

From 1 April 2013 the new Patent Box regime which we first announced in 2009, will be introduced. It will give a 10% UK Corporation Tax rate for 'patent derived profits'.  If this is combined with R&D tax credits it is perfectly plausible that tax could be eliminated altogether.

HMRC have released headline guidance following the recent budget, and also a Technical Note on the legislation.

The key to making the most of this opportunity is to maximise patent derived income arising to your company which includes:

• income from sale of a patented item or an item incorporating it;
• license fees and royalties for use of the patented item;
• income from sale of a patent;
• amounts received for infringement; and
• notional arms length royalties for your own use of the patent.

 
Using the Patent Box with the R&D tax credits means that in the period of heavy investment in IP you may be able to get tax credit income from HMRC and in the period of successful exploitation only pay tax at 10%. 

To make the most of this great opportunity speak to our expert team who are familiar with R&D tax credits and understand how to get the most from the Patent Box in conjunction with your accountant.

We have designed  a detailed route route to maximising your potential Patent Box tax benefit fall into three typical stages.