Patent box tax relief guide

Qualifying companies can apply a reduced corporation tax rate to profits generated from patented inventions, helping to increase cashflow and support future investment. 

What's inside:

• Patent box explained: Understand how the regime works and how qualifying profits are taxed at 10%
• Eligibility criteria: Find out whether your business qualifies for patent box relief
• How to claim: Learn the steps involved in making a compliant and effective claim
• Real-life case study: Discover how S&W helped a manufacturing client secure millions in tax savings
• Frequently asked questions: Practical answers to common patent box queries

Patent box is a corporation tax relief introduced to encourage companies to develop, retain and commercialise IP in the UK, rewarding those who successfully bring patented innovations to market.

For businesses investing in innovation, opportunity is significant. Innovation is often one of a business's most valuable assets. Yet, many companies either overlook patent box relief entirely or miss out on the full relief available. Many put this down to the complexities of calculating qualifying profits, requiring detailed technical and financial analysis.

Fortunately, our patent box experts can help navigate this complexity for you and your organisation.

How the claim process works

We outline the key stages involved in a successful claim, including:

• Identifying qualifying patents and IP
• Assessing relevant income streams
• Attributing costs and profits appropriately
• Preparing supporting documentation
• Making the patent box elections within corporation tax returns

Turning innovation into tax savings

If your business holds patents, has applied for patents or generates revenue from innovative products and processes, now is the time to assess whether patent box relief could benefit you.

Patent box tax relief can deliver substantial value when approached correctly. Working alongside IP specialists and tax advisers, businesses can identify opportunities that may otherwise be missed and ensure claims are optimised while remaining compliant with HMRC requirements.

In our dedicated guide, we share in-depth client case studies embedded within our wider product offering. By establishing a robust methodology for allocating qualifying income and expenditure, we successfully secured ongoing patent box claims generating millions of pounds in savings.

The result? Increased cashflow and additional funds available to invest in future innovation and growth.