Now you have completed your R&D have you considered a patent?
What is Patent Box?
Patent Box is another Government scheme to support companies who invest in innovation. This could enable you to pay a reduced Corporation Tax rate of 10% on profits – if they come from the sale of products or services containing a qualifying patented innovation.
The relief can be applied to profits from the worldwide sales of patented products, even if the patent only applies to a small part of the total product. It can also apply where patents have been acquired or you have an exclusive licence, but there are further conditions to meet and the relief may be reduced.
Who and what qualifies for the Patent Box?
Patents can only qualify if they are granted by the UK Intellectual Property Office, the European Patent Office, or specified EEA countries.
Patent Box can be claimed for newly granted or acquired patents; however, the UK claimant company must have had or intend to have, a significant involvement in development of the patented invention, or a product incorporating the patented item.
If you have applied for a patent and the application is pending you may be able to go back to the date the application was made and claim benefit from this date under the scheme.
Have patents already?
Speak to an expert regarding a potential claim to see if you could derive a tax saving from the scheme, the savings can be substantial.
Don’t have patents?
Have you considered applying for a patent? If this is something you are keen to do we have experts that can help.
Not only does it provide protection for your IP but will also have tax benefits.
Do you have a product or process that is a high revenue earner for your business? Then you should consider looking at the potential for a patent, as it may reduce your tax liability. Please contact our patent experts to discuss how we could help you register your patents.