The current Patent Box regime was introduced in April 2013 and many companies have made claims. Patent Box provides effectively a 10% tax rate to reward UK companies that are exploiting patented IP rights. Following the rise in the UK corporation tax rate from 19% to 25% in April 2023, the 10% patent box tax rate is increasingly attractive. As a result we are seeing significantly more interest from our clients in this area, as they look to assess their eligibility for claims and/or optimise existing claims.
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How we can help you
- Discuss and consider the Patent Box regime and how this applies to your business, enabling informed choices to be made;
- Assess your ability to qualify for patent box incentives.
- Map income to patented products, spare parts, working collaboratively with our engineers and technical specialists who understand your business;
- Analyse accounting records to establish how much income will qualify;
- Prepare claims and supporting documentation to meet the requirements of HMRC;
- Negotiate and help agree your claims with HMRC;
- Develop a method to help you compile claims in-house on an ongoing basis;
- Review existing claims to ensure they are optimised and robust to HMRC scrutiny;
- Assist with identifying patenting opportunities where you haven't previously pursued a strategy of patent protection;
- Advise on the accounting aspects of patent box (current and deferred tax);
- Advise on IP ownership globally, including legal and structuring aspects working with our Legal team;
- Help with consideration of the location of R&D and the impact on the R&D fraction;Assist with transfer pricing aspects of claims – brand and notional royalty aspects, streaming and profit attribution to maximise claims;
- Consider the interaction of Patent Box with the new loss and interest deductibility rules that apply from 1 April 2017;
- Consider an IP company where centralisation is commercially attractive and patent box incentives can be obtained.
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