The Patent Box Tax Relief
The Patent Box tax relief is the Government’s way of rewarding companies that are driving innovation. The aim is to encourage the development of new patented inventions in the UK. If your company is making a profit on your patented inventions, you will be eligible for a lower effective corporation tax rate of 10% on your relevant profits. This will save your company money and allow you to invest in future innovation.
If you are eligible for the Patent Box tax relief, it is likely that you are also eligible for R&D tax relief. Our team of experts are here to help – just give us a call!
What is The Patent Box tax relief?
,In 2009, in an effort to further reward innovative companies, the UK Government announced an initiative called “the Patent Box”. This legislation gives a reduced effective rate of corporation tax to 10% for any companies making an income from patents. The relief was phased in from 1 April 2013 and the full benefit of the Patent Box was available from 1 April 2017.
In 2016/17, a total of 1,170 companies claimed relief under the Patent Box with a total value of £1.035 million. The number of claims in 2017/18 was 1,120 with a value of £993 million, however there was hundreds of eligible companies who did not claim!
Do I Qualify?
Do you have an existing patent? Or are you considering applying for one?
Are you a UK Limited Company?
If you answered "Yes" to both of those questions then The Patent Box is likely to apply to you.
As the Patent Box regime is optional, a company can claim the relief if it has opted into it. You will be eligible if you own the patent outright – but there are also additional opportunities to claim. You could also be eligible if you have an income from licensing a patent or even if you have sold a patent.
The Patent Box legislation is complicated and the process for submitting a claim can be confusing, but our team of experts are here to help. We will thoroughly assess your position and if we can’t see an opportunity for you to claim the Patent Box tax relief, you won’t pay a penny.
How can we help you?
Reclaim Tax UK are experts in specialist areas of tax relief. We have been helping clients secure tax relief for over 10 years and have identified over £264m in tax benefit for our clients to date
We work with businesses, Accountants and Solicitors throughout the UK. We have a delivery team of over 100 in-house experts which includes Surveyors, Tax Technicians, Accountants, Report Writers and Case Managers.
We are dedicated to ensuring you have a smooth claims process, minimising the disruption to your day to day activity, so you can get on with running your business. All you need to do is provide us with some details regarding your patents and we’ll take care of the rest.
FAQ
Look through the answers to the most popular questions of our customers. Didn’t find what you need? Just send us a message and we will get in touch with you shortly.
Who qualifies for the Patent Box tax relief?
Your company will qualify for relief if:
• You own patents, or
• You own an exclusive licence to exploit a patent
• It’s a UK, specific EEA country or EU patent (& certain other rights)
What can I claim for?
the Qualifying income includes:• Sale of patented items or those that incorporate a patent.• Licence fees.• Proceeds from sale of patents.• Compensation income from infringement ownership rights.
Excluded income• Income from regular activities (that is income earned regardless of patent rights).• Income from marketing asset return (that is income earned from branding rather than technological innovation).
What is HMRC's role?
HM Revenue & Customs created capital HM Revenue & Customs (HMRC) created the Patent Box legislation to encourage UK businesses to invest further in innovation.
We would not generally request any information from HMRC to process your claim, and generally find that the required information is more readily available from our clients and their advisers.
Our report has been specifically formatted for HMRC purposes and we believe that this has a large part to play in the fact that historically less than 1% of claims submitted to HMRC have generated the need for a further enquiry.
HMRC are very used to processing these claims. Our specialist advisers liaise with them daily, on your behalf, and in the unlikely event of any issues being raised, it is part of our commitment to you to resolve these at no extra cost.
It sounds too good to be true. Are there any hidden costs?
We charge no up-front fees, and should we fail to identify a claim we will not charge you at all.
We do not charge any submission fees so there will be no surprises when it comes to your claim being filed with HMRC.
We also offer all clients 6-year report protection as part of our service.