PATENT BOX – CORPORATION TAX RELIEF

Does your business hold a UK or European patent? (Even if the application is pending, you can still qualify).  

Have you undertaken development of the patent itself, or a process incorporating the patent?

If so, you could claim Patent Box Relief and pay Corporation Tax at just 11% (10% from April 2017).

For example, if you have profits derived from patented inventions totalling £100,000, the total tax saving (using 1 April 2017 figures) is £10,000.  

The Patent Box scheme enables companies to apply a lower rate of corporation tax to profits resulting from its patented inventions. So, what type of income can qualify?  

  • Income from the sale of patented products; even if the product contains a patented component, all income from the sale of the product would be eligible. For example, a patented printer cartridge would result in income from the sale of any printer incorporating the printer cartridge, to be treated as qualifying income.
  • Licence fees/royalties received for granting the use of a patented item.
  • Income from the sale of a patent.
  • Income from the infringement of a patent.

What to do next?

If you have any patented inventions used in your business, please get in touch

 

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