{"id":2597,"date":"2024-05-01T12:41:09","date_gmt":"2024-05-01T12:41:09","guid":{"rendered":"http:\/\/www.robbtax.co.uk\/blog\/?p=2597"},"modified":"2024-05-01T12:41:26","modified_gmt":"2024-05-01T12:41:26","slug":"everything-you-need-to-know-about-patent-box","status":"publish","type":"post","link":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/","title":{"rendered":"Everything you need to know about Patent Box"},"content":{"rendered":"<p>One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.<\/p>\n<p><!--more--><\/p>\n<p>The Patent Box is one such scheme, designed to provide a lower rate of Corporation Tax to profits earned on patented inventions.<\/p>\n<p>Companies which elect into the Patent Box can benefit from a 10 per cent rate of Corporation Tax, provided they meet certain criteria:<\/p>\n<ul>\n<li>Liable to Corporation Tax<\/li>\n<li>Owns or has exclusively licenced-in the relevant patent<\/li>\n<li>The patent licence is granted by either the UK Intellectual Property Office, the European Patent Office or by the relevant body in certain European Economic Area nations<\/li>\n<li>Undertake qualifying development of the patent \u2013 meaning they have been involved in the underlying innovation or application of a patented invention.<\/li>\n<\/ul>\n<p>Corporation Tax rates within the Patent Box will only apply to profits made from exploiting patents, not all profits made by the company.<\/p>\n<p><strong>Which profits qualify?<\/strong><\/p>\n<p>The proportion of your profits which qualify for reduced Corporation Tax will depend on the number of patents you own and whether you earn profits through other commercial activities.<\/p>\n<p>Qualifying profits are classed as \u2018intellectual property income\u2019, and must come from at least one of the following:<\/p>\n<ul>\n<li>Selling patent rights<\/li>\n<li>Licencing out patent rights<\/li>\n<li>Infringement income<\/li>\n<li>Selling patented products, including bespoke parts and products incorporating the patented invention<\/li>\n<li>Manufacturing using a patented process<\/li>\n<li>Providing a service using a patented tool<\/li>\n<\/ul>\n<p>To make identifying qualifying profits easier, you should consider keeping a separate record of profits made on patented inventions.<\/p>\n<p><strong>How do I elect into the Patent Box?<\/strong><\/p>\n<p>Your company must elect into the Patent Box to benefit from a reduced rate of Corporation Tax \u2013 within two years of the end of the accounting period in which the qualifying profits were made.<\/p>\n<p>You can do this either in the computations accompanying your Company Tax Return or separately to HM Revenue &amp; Customs (HMRC) in writing.<\/p>\n<p><strong>What if I hold the licence of a patent?<\/strong><\/p>\n<p>Some businesses choose to purchase a licence to use a patent instead of owning it outright, known as licencing-in.<\/p>\n<p>Although you don\u2019t legally own this patent, profits generated by a licenced-in patent may qualify under the Patent Box if you meet all of the following conditions:<\/p>\n<ul>\n<li>You have the right to develop the patented invention and to exploit it commercially<\/li>\n<li>One or more rights under the agreement is exclusive to your business<\/li>\n<li>You have exclusive rights throughout an entire national territory<\/li>\n<\/ul>\n<p>You must also either be able to defend the rights of the patent by way of infringement proceedings or be entitled to the majority of damages awarded under successful proceedings.<\/p>\n<p><strong>Is the Patent Box right for my business?<\/strong><\/p>\n<p>If you meet the criteria and seek to commercially exploit a patented invention, then your business should consider electing to the Patent Box.<\/p>\n<p>It provides a significant financial incentive to continue to innovate and improve the products, services and processes within your sector.<\/p>\n<p>Tax reliefs under the Patent Box can be an excellent addition to a tax planning strategy, particularly for the most innovative businesses which draw substantial profits from patented inventions.<\/p>\n<p><strong>We can advise you on the Patent Box and other tax reliefs available to your business. Contact our team today to find out how we can streamline your business taxes. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.<\/p>\n","protected":false},"author":1,"featured_media":2600,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Everything you need to know about Patent Box - Accountants in Sutton Coldfield<\/title>\n<meta name=\"description\" content=\"Robb &amp; Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Everything you need to know about Patent Box\" \/>\n<meta property=\"og:description\" content=\"One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/\" \/>\n<meta property=\"og:site_name\" content=\"Accountants in Sutton Coldfield\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-01T12:41:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-01T12:41:26+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-1024x687.jpg\" \/>\n<meta name=\"author\" content=\"Robb &amp; Co Chartered Accountants in Sutton Coldfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Everything you need to know about Patent Box\" \/>\n<meta name=\"twitter:description\" content=\"One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robb &amp; Co Chartered Accountants in Sutton Coldfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/\",\"name\":\"Everything you need to know about Patent Box - Accountants in Sutton Coldfield\",\"isPartOf\":{\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg\",\"datePublished\":\"2024-05-01T12:41:09+00:00\",\"dateModified\":\"2024-05-01T12:41:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/9617d9fd2f8b94d6c2d74ff7235ca72b\"},\"description\":\"Robb &amp; Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg\",\"contentUrl\":\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg\",\"width\":2560,\"height\":1718},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.robbtax.co.uk\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Everything you need to know about Patent Box\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/#website\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/\",\"name\":\"Accountants in Sutton Coldfield\",\"description\":\"Accountants in Sutton Coldfield\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.robbtax.co.uk\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/9617d9fd2f8b94d6c2d74ff7235ca72b\",\"name\":\"Robb &amp; Co Chartered Accountants in Sutton Coldfield\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/64286301fda52d3e3898b597c466a37c?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/64286301fda52d3e3898b597c466a37c?s=96&d=mm&r=g\",\"caption\":\"Robb &amp; Co Chartered Accountants in Sutton Coldfield\"},\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Everything you need to know about Patent Box - Accountants in Sutton Coldfield","description":"Robb &amp; Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/","og_locale":"en_US","og_type":"article","og_title":"Everything you need to know about Patent Box","og_description":"One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.","og_url":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/","og_site_name":"Accountants in Sutton Coldfield","article_published_time":"2024-05-01T12:41:09+00:00","article_modified_time":"2024-05-01T12:41:26+00:00","og_image":[{"url":"http:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-1024x687.jpg","type":"","width":"","height":""}],"author":"Robb &amp; Co Chartered Accountants in Sutton Coldfield","twitter_card":"summary_large_image","twitter_title":"Everything you need to know about Patent Box","twitter_description":"One of the main ways that the Government encourages the use and commercialisation of innovative intellectual property is through tax relief.","twitter_misc":{"Written by":"Robb &amp; Co Chartered Accountants in Sutton Coldfield","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/","url":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/","name":"Everything you need to know about Patent Box - Accountants in Sutton Coldfield","isPartOf":{"@id":"https:\/\/www.robbtax.co.uk\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage"},"image":{"@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage"},"thumbnailUrl":"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg","datePublished":"2024-05-01T12:41:09+00:00","dateModified":"2024-05-01T12:41:26+00:00","author":{"@id":"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/9617d9fd2f8b94d6c2d74ff7235ca72b"},"description":"Robb &amp; Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.","breadcrumb":{"@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#primaryimage","url":"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg","contentUrl":"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/05\/shutterstock_2152305631-scaled.jpg","width":2560,"height":1718},{"@type":"BreadcrumbList","@id":"https:\/\/www.robbtax.co.uk\/blog\/everything-you-need-to-know-about-patent-box\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.robbtax.co.uk\/blog\/"},{"@type":"ListItem","position":2,"name":"Everything you need to know about Patent Box"}]},{"@type":"WebSite","@id":"https:\/\/www.robbtax.co.uk\/blog\/#website","url":"https:\/\/www.robbtax.co.uk\/blog\/","name":"Accountants in Sutton Coldfield","description":"Accountants in Sutton Coldfield","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.robbtax.co.uk\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/9617d9fd2f8b94d6c2d74ff7235ca72b","name":"Robb &amp; Co Chartered Accountants in Sutton Coldfield","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.robbtax.co.uk\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/64286301fda52d3e3898b597c466a37c?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/64286301fda52d3e3898b597c466a37c?s=96&d=mm&r=g","caption":"Robb &amp; Co Chartered Accountants in Sutton Coldfield"},"url":"https:\/\/www.robbtax.co.uk\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2597"}],"collection":[{"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2597"}],"version-history":[{"count":1,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2597\/revisions"}],"predecessor-version":[{"id":2598,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2597\/revisions\/2598"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/media\/2600"}],"wp:attachment":[{"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.robbtax.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}