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Claim Patent Box Tax Relief to maximise Innovation Tax Incentives

There are many tax incentives available to businesses carrying out innovative activities including Patent Box, introduced by the UK Government in April 2013 to allow companies to reduce their corporation tax to 10% (from 19%) on profits derived from patented products or processes.

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

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

What’s it worth?

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

How we can 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

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

R&D Tax Credits can be claimed alongside Patent Box and 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.