Are there other Technology Tax Relief Options available to you?


The Patent Box

The Patent Box is an initiative introduced by the government in April 2013 and compliments other forms of R&D Tax Relief. It is designed to encourage businesses to make profits through their Patents and ultimately reduces the tax paid on those profits.

Qualifying requirements

You can only benefit from the Patent Box if your company is liable to pay Corporation Tax and makes a profit from patented inventions.

If you own a Patent granted by the UK Intellectual Property Office, the European Patent Office or the national Patent Office of most EEA countries, and you either

Own the patents; or

Exclusively license-in the patents;

Have undertaken qualifying development; and

Must have made a significant contribution to the creation or development of the patented invention or product incorporating the patented invention.

Gaining profit

The profit gained from the sale of patented inventions is taxed at 10%. From 1 April 2013 the tax will be 18% and will reduce by 2% each year until 2017.

Companies can make a profit from their patented inventions from the following:

The sale of patented products, or products containing the patented invention;

Licensing out;

Selling patented rights;

Infringement income; and

Damages, insurance or other compensation related to the patent rights.

If you feel your company may be eligible for tax relief
we can help you assess your eligibility and
calculate your potential ‘relevant profit’.

Video Games Tax Relief

This initiative is specifically for Video Games developers that have incurred costs after 1 April 2014. It is part of a suite of 5 Creative Industry Tax Reliefs.

Qualifying requirements

As with R&D Tax Relief, your company must be liable to pay Corporation Tax, it must also be directly involved in the production & development of video games that are classed as ‘British’.

The video game must be intended for supply and at least 25% of the core expenditure must be incurred on goods or services that are provided from within the EEA.

The test of Britishness / Cultural Test

The British Film Institute undertakes assessment on whether the game can be classed as ‘British’. Further information can be found here

Compatibility with other forms of R&D Tax Relief

For Larger companies, you have an opportunity to claim both Tax Reliefs until April 2016 when RDEC becomes mandatory and because RDEC is not a Tax Relief you can claim for any R&D Costs as well as Video Games Tax Relief.

For professional advice on these specialist forms of Technology Tax Relief

Contact us for expert advice and assistance