Patent Box is a UK tax relief that allows companies to apply a lower 10% rate of Corporation Tax to profits earned from patented inventions and certain other qualifying intellectual property.
Who can benefit
The company must own or hold an exclusive licence for a qualifying patent and have undertaken genuine development activity on it. It is often used alongside R&D Tax Credits, since the two schemes work well together for innovative businesses that both develop and commercialise patented technology.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.