The Patent Box scheme came into force in April 2013. The scheme allows companies to apply a lower rate of Corporation Tax to profits earned from its patents after this date (as well as profits arising from supplementary protection certificates, regulatory data protection and plant variety rights). The relief will be phased in over a four year period from April 2013 - once the full benefit of the regime is in effect the lower rate of Corporation Tax to be applied to these profits will be 10%. This 10% rate will apply from April 2017.
Patent box is focussed on patents rather than other forms of intellectual property (IP) as they have a strong link to R&D and high-tech manufacturing and are used by innovative companies in a wide range of sectors. It will provide an incentive for these companies in the UK to develop new innovative patented products. This will encourage companies to locate the high-value jobs associated with the development, manufacture and exploitation of patents in the UK and maintain the UK's position as a world leader in patented technologies.
Find out more about how to qualify for Patent Box.
Find out more about the patents which qualify for Patent Box.
Find out more about the types of income that can qualify for Patent Box.
Finding out more
You can find further information on Patent Box, including how to contact HMRC to get answers to your Patent Box questions on the HMRC website .For queries relating to particular patent applications or patents please contact the Intellectual Property Office's Information Centre.