The Patent Box

The Patent Box tax relief regime is used in the UK to incentivise research and development by taxing patent revenues differently.

Patent Box is a special tax regime used in the UK to incentivise research and development by taxing profits derived from the sale of patented items differently. Introduced in April 2013 as part of the government’s economic growth agenda, Patent Box is designed to encourage businesses to promote innovation and invest in research and development (R&D), and ultimately retain intellectual property (IP) and corresponding jobs in the UK.

Patent box, also known as intellectual property box regime, enables businesses to make profits through their Patents and reduce the tax paid on those profits. The UK Patent Box is a relief from corporation tax and is only available to qualifying companies.

Companies can make a profit from their patented inventions by:

The sale of patented products, or products containing the patented invention
Licensing out
Selling patented rights
Infringement income
Damages, insurance or compensation related to the patent rights

Patent Box qualifying requirements

There are specific eligibility requirements, but essentially if your UK business is liable for corporation tax and you have a UK or EU patent, you could qualify for Patent Box Tax Relief. Your company must have made a significant contribution to the creation or development of the patented item and will need to elect into the Patent Box regime. Qualifying requirements include:

Being liable for corporation tax and making a profit from patented inventions
Owning the patents, or exclusively license-in the patents
Having undertaken qualifying development
Made a significant contribution to the creation or development of the patented invention

The calculations for determining the qualifying expenditure for Patent Box Tax Relief are complex. The team at Cooden Tax Consulting specialise solely in Technology Tax Reliefs and are experts in Patent Box Tax Relief. Speak with our Patent Box experts now to see if your patent qualifies.

Don’t miss out on Research & Development Tax Relief. Maximise your tax relief and you have more opportunity to invest in growth.

Electing into the Patent Box regime

The Patent Box is an optional regime, meaning a company can only benefit from the Patent Box if it elects into the Patent Box regime. A company may elect into the Patent Box regime for profits earned in a particular accounting period within 2 years of the end of the accounting period in which the relevant profits arose.

Patent Box FAQs

Can I claim both Patent Box and R&D Tax Reliefs?

Do I qualify if my patent is registered in another country?

I have licensed my patent, can I still claim Patent Box Tax Relief?

I have a licence to sell a patented item from a third party, can I still claim Patent Box Tax Relief?

Is it possible to make a patent box loss?

How do I claim?

What Our Clients Say

    
 
 
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   Alex Pawle 
 
 
 
  We went through the discovery call process with Simon and his team. We felt well advised through the complexity of R&D tax claims, and would certainly recommend Cooden to other SMEs.
  
 
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   Craig Coulton 
 
 
 
  Cooden is five stars! Simon and his team stepped in to help our business with a complex R&D tax relief application. Simon’s attention to detail is second to none. His understanding of the nuances of tax law is impressive, and I’ve had the privilege of seeing his reporting first-hand. It’s not often you work with a team that exceeds your expectations, but Cooden has. I’m impressed and you will be too.
  
 
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   Narciso Baldo 
 
 
 
  Simon and the team at Cooden are fantastic to deal with. Responsive, knowledgeable and friendly, they're expertise and insights in all things R&D have been invaluable to us. Highly recommend.
  
 
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   Darren Wynn 
 
 
 
  Exceptional expertise and insight! Simon provided invaluable advice during our exploratory call. Their depth of knowledge and clear communication greatly enhanced our understanding. Truly grateful for their guidance
  
 
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   Dan Frost 
 
 
 
  Excellent advice and support. Simon is clearly highly experienced and knowledgable on all things R&D related.
  
 
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   Alex Butler 
 
 
 
  I had the pleasure of working with Simon, and I couldn't be more pleased with the exceptional accounting and R&D relief advisory services he provided. Simon's expertise in navigating the complex landscape of R&D relief schemes with HMRC is truly commendable. Simon's deep knowledge and dedication to his work were evident throughout our collaboration. He demonstrated a keen understanding of the intricacies of R&D relief, and his ability to guide us through the process was greatly appreciated!
  
 
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   Gavin Jones 
 
 
 
  Simon was extremely helpful with our R&D tax claim, would highly recommend you speak to him if you have any concerns.
  
 
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   Caroline Lloyd 
 
 
 
  Simon and the team at Cooden Tax Consulting are a pleasure to deal with, friendly knowledgable and efficient.  (On behalf of iPrescribe Exercise Digital Ltd)
  
 
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   Jack Maddalena 
 
 
 
  I have had a great experience working with Simon and his team at Cooden Tax Consulting. We have used them multiple times, highly recommended, friendly experts.
  
 
  
  
 
 
   Google rating score: 5.0 of 5, based on 15 reviews

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