The Patent Box tax regime transforms patent rights from simply being an overhead to a potentially significant reducer of a company’s Corporation Tax liability.
Since 1 April 2013, companies have been able to elect for a reduced rate of Corporation Tax. The reduced rate is 10% which will be phased in gradually over a five year period applying in full from 1 April 2017.
The 10% rate of Corporation Tax is applicable to products and services that incorporate patented inventions - as long as the company owns, or has an exclusive licence under the patent and meets certain development criteria.
For example, profits from the sale of a product that has a patented part integrated into it can qualify in full for the reduced rate. The patent could be on a very small component that forms a much larger product. This piece of legislation is surprisingly generous. It's even possible to include profits from unpatented spares sold which are designed to be used with the patented product.
You can take advantage of this exciting opportunity for your clients. If a company doesn't already hold a patent on its products and processes and they wish to benefit from a headline Corporation Tax rate of 10%, we can seamlessly apply for a patent before securing the maximum Patent Box tax relief. We are unique in that we can provide both services in-house and have developed a transparent step-by-step process and fee structure for both areas of advice.
Our programme of support
Our Patent Box service can be adopted as a three stage process; an innovation workshop, applying for a patent to the UK Intellectual Property Office and finally, applying for the Patent Box tax relief.
Call us to receive a free health check and one of our experienced advisers will ascertain whether the company will qualify for patent box relief.
If you are unsure at this stage, a telephone conversation with one of our advisers will be able to definitively establish whether or not a claim can be made, call us on 01142 364457