Intellectual Property value creation and the Patent Box
Intellectual Property (IP) often arises from having undertaken R&D and is one of the most valuable assets a business owns. It is therefore vital to have a defined strategy for both its’ development and protection to ensure the benefit generated is fully maximised. Its’ protection should be at the forefront of any business strategy to ensure this hard work is rewarded, enabling you to increase the marketability of your invention, gain competitive edge and maximise commercial gains.
There is a misconception that the process of identifying, drafting and protecting ideas and novel solutions is time consuming, costly, uncertain and subject to workarounds. However, working with a results-orientated advisor with a proven track record of success and an experienced team of intellectual property experts is invaluable.
Our comprehensive IP services are delivered in conjunction with one of the UK’s leading Patent Attorney firms to ensure the right balance of technical, legal and tax specialists. Our service is predominantly focused on helping our clients invent, protect and commercialise their ideas, combining valuable expertise and offering a unique service.
We deploy the following 3-stage approach:
TYPES OF INTELLECTUAL PROPERTY
Intellectual Property is the creation of ideas, knowledge and information (such as inventions, designs, names and images) and is protected by law via trademarks, copyrights, patents and trade secrets, all of which are recognised as intangible assets known as intellectual property rights (IPR), as they provide specific legal rights which protect the IP owner.
| IPR | Covers | Need to apply | Maximum duration |
|---|---|---|---|
|
Patent |
Inventions |
Yes |
20 Years |
|
Copyright |
Litery, musical, artistic works and software |
No |
70 Years after death of author |
|
registered design |
Image - look and feel |
Yes |
25 Years |
|
Registered Trademark |
Name, logo |
Yes |
Unlimited |
|
Confidential information |
Unpublished secret information |
No |
Unlimited |
|
Database Right |
Databases |
No |
15 Years |
What is Patent Box?
Patent Box is a tax incentive which enables businesses to pay a reduced corporation tax rate of 10% on profits derived from patented inventions. And with Corporation Tax rates due to rise to 25%, there’s never been a better time to act and review your IP strategy.
To qualify, companies need to own (or exclusively license-in) patents granted by either The UK Intellectual Property Office, The European Patent Office or countries in the EEA, be liable for Corporation Tax and fulfil ‘development’ and/or ‘active ownership’ conditions.
Where a patent has been granted, even where the patented element is minor, all profits arising from product revenues should qualify providing a written election requesting clearance to claim is made to HMRC.
And whilst a granted patent is required before any benefit can be claimed, seeking election whilst an application is ‘pending’ means the reduced tax rate can be applied retrospectively to profits generated during the ‘pending’ period since the election was made, up to a maximum of six historic accounting periods.
Patent Box
OUR PATENT BOX SERVICE
Our highly skilled and experienced team of intellectual property, technical and taxation professionals work with companies to identify all qualifying activities and associated expenditure. We use a bespoke claim methodology to ensure the claim is legislatively robust and the value of the entitlement is fully maximised and choice of methodology aims to keep time investment to a minimum, ensuring day-to-day business activities are not affected as a result.
As Patent Box can be claimed in conjunction with other schemes such as R&D Tax Credits and Capital Allowances, engaging a specialist who takes a holistic approach will ensure the maximum tax benefit is claimed and incorporated in the company’s tax return.
Start the conversation
To ensure you are receiving the Government funding you are entitled to, speak to Innovation Tax today.
Contact us now for a free consultation.
