Patent Box

To make a claim for Patent Box tax relief, a company must elect into the Patent Box scheme within two years after the end of the accounting period in which the profits and income arose. Ryan’s innovation funding specialists can support your business in making an election in the computations accompanying your company tax return, or separately in writing.  

Our specialists will assist with your Patent Box calculation, work out the profits generated from your patented products (and profits generated from patents applied for but not yet granted, as the relief is rolled up and given upon grant of the patent), and record them on your behalf in your tax return. We will then prepare and attach a Patent Box report to the corporation tax return providing further information on the calculations. Please note, “streaming” of income and expenditure is compulsory for each individual patent or IP right, so it is important that your business maintains detailed recordkeeping. 

What’s more, the Patent Box claims can be made alongside research and development (R&D) tax credits claims. If you are conducting R&D, this is a good indicator of your company’s potential for a Patent Box claim as the criteria for “innovation” is very similar.

Companies receiving profits from patents directly as a result of R&D can claim the Patent Box treatment on top of any R&D tax relief they received when developing the product. These savings can then fund the next generation of research to produce patented products.

Taking advantage of both tax relief schemes can significantly reduce your tax liabilities. The cost of obtaining a UK patent could easily be outweighed by the tax reduction obtained via a Patent Box claim.