Patent Box Tax Relief

Let's realise the potential of patents together

If your business makes a profit from patented inventions, you may be eligible for a lower effective corporation tax rate of 10% on your relevant profits under the Patent Box. In the short term Patent Box will save your company money and in the long term allow you to invest more into future innovations.

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Patent box tax relief calculator

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Products with patent over them, or over a specific element

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THIS R&D has considerable experience of advising client about Patent box tax relief. Our Head of Tax Tom Byng started advising clients on Patent Box in 2012 just prior to its implementation, whilst working at Deloitte's Cambridge office, and included advising clients on the potential impacts, as well as assisting on initial training sessions for the Patent Box team at HMRC. Since then Tom has worked on an average of 20 Patent Box claims each year, across a broad sphere of industry sectors, including but not limited to: agritechnology, biotechnology, healthcare, and manufacturing. 

Our experience in the field allows us to help business claim a tax relief that is often considered 'complex', however the key value that we add is on the advisory side, such as:

  • Apply transfer pricing methodologies to value the notional royalty (i.e. how profits from process patents are calculated) and the notional marketing royalty (i.e. how brand values are calculated.)
  • Advise on methods of income identification and tracking. 
  • Reviewing previous submissions to ensure that these are optimised.
  • Maximise claims for R&D tax relief. As well as being a claim in its own right, all these costs are removed from the Patent Box calculation, therefore increasing the profits from patents, and increasing the Patent Box claim.
  • Advise on tracking of R&D expenditure for the nexus fraction (i.e. the R&D carried out by the UK company as a proportion of the total R&D costs of the group).
  • Reviewing the registration of patents in jurisdictions to determine their eligibility.
  • Assessing the implementation of patentable inventions in products to determine the overall eligibility.
  • Create the Patent Box submission for HMRC and maximise the qualifying income to be taxed at 10%. 

Working With Us

Historically, the Patent Box has been underclaimed by eligible businesses. At THIS R&D, we believe our retrospective fee structure is finally making it commercially viable for UK SMEs to engage with this tax policy. Please feel free to connect with our team to explore this opportunity further. 

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