Patent Box

It is time to check to see if you meet the requirements on innovative expenditure introduction of the Patent Box regime.

The aim of the regime is to provide an additional incentive for companies to retain and commercialise existing patents and to develop new innovative patented products.

The Patent Box allows companies to elect to apply a 10 per cent rate of corporation tax to all profits attributable to qualifying patents, whether paid separately as royalties or embedded in the sales price of products, which is an exceptionally competitive rate of corporation. It should be noted that the 10 per cent rate is being phased in gradually.