Transcript: David Turner on patent box

Transcript

I am David Turner, a Patent Box Director. Patent box allows companies to apply a 10% corporate tax rate to their profits derived from patented technologies. This is a significantly lower tax rate than the standard 25% corporate tax rate, providing enormous value to businesses that qualify.

A company may only need a single UK or European registered patent within a product line for the entire revenue on the product to qualify for patent box. For example, a patented wing mirror could allow the entire sale of a car to qualify for patent box. In order to be eligible for patent box, businesses typically also need to carry out some UK R&D activities.

We work with many businesses to help them assess eligibility for patent box and prepare claim calculations. For businesses that don't currently hold any patents, we can work alongside you and patent attorneys to identify potentially patentable technology that could give rise to future cash benefits. We also regularly work with businesses looking at structuring transactions, such as moving IP into the UK or restructuring internally within a group, and we can help groups ensure they do this in a way that enhances and protects patent box benefits.

Please do reach out to me or one of my colleagues from the incentives team to discuss this further.