Claim Patent Box Tax Relief to maximise Innovation Tax Incentives

Innovation tax explain how the Patent Box encourages UK companies to create value from their IP by reducing Corporation Tax to 10% on profits derived from patented inventions.

What is the Patent Box tax relief scheme?

There are many tax incentives available to businesses carrying out innovative activities including the Patent Box, which was introduced by the UK Government in April 2013 to allow UK companies to reduce their corporation tax to 10% on profits derived from patented products or processes.

HMRC statistics show an increase in the value of Patent Box tax relief claimed by companies to over £1bn. A summary of the statistics can be viewed here.

An IP specialist, such as Innovation Tax, with experience of innovation tax incentive claims can therefore ensure businesses maximise the range of benefits available to them via a successful and robust Patent Box claim.

What is the Patent Box worth?

The Patent Box scheme allows UK businesses to apply a reduced rate of corporation tax on profits derived from patented inventions, potentially leading to thousands of £’s of tax savings, whilst concurrently creating valuable intellectual property (IP) rights. Statistics show the average Patent Box claim for an SME is around £44,000, and £3.2m for large companies.

How can Innovation Tax help?

The specialist IP team at Innovation Tax will work with you to assess your entitlement and claim the tax relief on your behalf by;

Identifying qualifying Patent Box product and/or process patent(s).
Mapping sales by qualifying / non-qualifying IP and advising on the potential to maximise the % proportion of qualifying sales.
Electing you into the Patent Box scheme.
Reviewing prior R&D Tax Credit claims, so identifying opportunities to maximise relief under both schemes.
Compiling and submitting your Patent Box claim reports to HMRC.
Agreeing your claim with HMRC and obtaining your tax benefit.

By working with Innovation Tax to identify the potential for a ‘narrow scope’ patent within your R&D activities (a single patentable element/idea), you could unlock the Patent Box, potentially saving £ thousands in corporation tax each year.

Our Patent Box claims process

Our team of technical and tax specialists will work through our straightforward process with you:

Stage 1 – Undertake an eligibility assessment
Stage 2 – Source the necessary financial documents to assess claim viability
Stage 3 – Meet to conduct an in-depth analysis of all expenditure related to qualifying IP
Stage 4 – Produce robust reports which outline the basis of the Patent Box claim for HMRC
Stage 5 – Approve and submit the claim to HMRC

Can R&D Tax Credits can be claimed alongside Patent Box?

Yes, they can. in fact, combining these tax incentives often provides businesses with a significant boost, in terms of both a cash injection and value. Innovation Tax therefore welcome introductory calls from any company who would like to assess their eligibility to claim these valuable tax incentives.

HOW CAN WE HELP?

Innovation Tax offer a comprehensive range of IP services including the Patent Box which is closely linked with R&D Tax Credits, enabling many of our clients to maximise their tax relief by claiming across both schemes; whilst also commercialising their IP, and potentially increasing company valuation.

Start the conversation with a complimentary, no-obligation discussion.

Innovation Tax specialise in helping companies access vital innovation tax incentives and grant funding to enable their businesses to grow, increase profitability, reduce risk and enable further investment in R&D, IP and capital assets.