Engineering & Manufacturing
IT & Software
Food & Drink Manufacturing
Patent box is a preferential tax scheme for profits arising from patents.
The patent box allows attributable profits to be taxed at a lower rate which is calculated. The scheme has been brought into effect for profits received from April 2013 and, as with the R&D Tax scheme, can be applied retrospectively for up to two tax periods.
What is the purpose of the scheme?
The scheme has been devised to encourage technological innovation within UK based businesses. Working alongside the R&D Tax Credit scheme, the scheme enables companies to benefit from protecting IP gained. The scheme encourages businesses to locate high-value jobs and activities associated with technically innovative work within the UK.
What are attributable profits?
Attributable Profits are profits arising from items which are patented, contain an intrinsic patented item, or received via licensing of a patent. This applies to existing patents and patents pending, however the benefits cannot be realised until the patent is granted.