What is Patent Box?
The Patent Box is a government initiative designed to encourage innovation and investment in research and development (R&D) within the UK. By electing into the Patent Box regime, companies can benefit from a reduced Corporation Tax rate of approximately 10% on profits generated from patented inventions and certain other intellectual property (IP) rights.
This reduced tax rate applies not only to profits directly derived from the patented item but also to sales of products that incorporate the patented technology, licensing royalties, and even compensation for infringement.
Why is Patent Box beneficial?
For businesses involved in innovation and intellectual property, the Patent Box can result in significant tax savings. Here’s four reasons why you should consider it:
Reduce your Corporation Tax rate on eligible profits to 10%, compared to the standard rate of 25%. This substantial reduction allows you to retain a larger share of your profits, providing additional financial resources that can be reinvested into further innovation, expansion, or other business activities.
Securing grant funding is a competitive process with applications undergoing a rigorous review process. Being awarded funding is a prestigious accolade which showcases your commitment to innovation and your ability to meet rigorous selection criteria. This will enable you to leverage further opportunities to secure funding and further your brand amongst clients and investors.
With the extra capital saved from lower taxes, you can invest in further innovation, marketing, or operational improvements, helping you to stay ahead of competitors. Additionally, by leveraging the Patent Box, you can price your products more competitively or invest in enhancing product quality, in turn increasing your market share and long-term profitability.
In today’s rapidly evolving market, securing your financial future is essential. The Patent Box allows you to build a stronger financial foundation by optimising your tax position. By reducing your tax burden on profits from innovations, you can create a more resilient business model that is better equipped to withstand economic fluctuations and market changes.
The UKRI Strategy 2022-2027 report shows that public investment in Research & Development attracts a further £2 of private R&D investment for every £1 of public money.
Who can claim Patent Box?
The Patent Box regime is accessible to a wide range of businesses across various industries that hold and exploit qualifying patents. Whether you’re a startup developing groundbreaking technology or an established company with a strong portfolio of patented products, the Patent Box can offer substantial tax relief.
Eligible companies are not limited to those in the tech or pharmaceutical sectors—any business that generates profits from patented innovations, including manufacturing, engineering, and even software development, can potentially benefit.
Additionally, the regime applies to both UK-based patents and those granted by certain European and global patent offices, making it a versatile option for companies with international IP assets. Even if your business has only recently begun to profit from its patents, you could still be eligible, ensuring you don’t miss out on valuable tax savings as you grow.
Don’t leave money on the table. Let Kene Partners help you unlock the full potential of the Patent Box regime. Book a free consultation today and find out how much you could save.
This includes patents granted by the UK Intellectual Property Office (UK IPO), the European Patent Office (EPO), or certain other EEA states
Your company must generate income from the exploitation of patented inventions, such as selling patented products, licensing IP rights, or receiving damages for patent infringement.
Your company must have played a significant role in the creation or development of the patented invention or an active role in the ongoing development of the product or process incorporating the patented invention.
Why choose us for Patent Box support?
Navigating the complexities of the Patent Box regime can be challenging. Our experienced team understands the nuances of the legislation and can ensure you meet all the necessary conditions to claim the full benefit. We offer:
Find out if you qualify for R&D funding
Discover which UK government incentives your business could qualify for with our quick and easy self-assessment tool. In just a few minutes, you’ll receive a tailored report outlining the funding opportunities available to support your innovation and growth.
R&D tax credits, grants, Patent Box and R&D allowances are all schemes are designed to help ambitious businesses like yours thrive. Don’t leave potential funding untapped—it could be the key to fuelling your next big idea.
Patent Box – FAQs
The reduced 10% tax rate applies to profits generated from:
- Selling products that include a patented invention
- Licensing your patented technology to others
- Selling patented rights
- Infringement income (damages received from lawsuits)
- Income from spare parts or products made using the patented process
Read more about how R&D tax credits and Patent Box can work together here.
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How do we calculate our fees?
At Kene , our fees reflect the quality of the service we provide. We always want to offer value, and our rates are an honest and competitive reflection of what we do – we apply the same diligence, rigour, and consistency to all our work. But we won’t cut corners or sacrifice client service in order to be that ‘cheap’ R&D consultancy.
As part of our commitment to outstanding service, we invest in our highly skilled and educated team of engineers, sector specialists, chartered tax advisers, and R&D specialists – our fees allow us to maintain that commitment.
Our full-service, end-to-end R&D tax claims are success-based. The fee is charged as a percentage of the claim which we agree upon before any work takes place. This fee covers the full scope of work including technical workshop(s), information gathering, report writing and full support in the event of an enquiry from HMRC. You will also be appointed a dedicated project manager who will be on hand to assist throughout the claims process.
Success-based; only pay if your claim is successful
Dedicated project manager and in-house sector experts
Full support beyond claim submission
Find out if you qualify for R&D funding
Discover which UK government incentives your business could qualify for with our quick and easy self-assessment tool. In just a few minutes, you’ll receive a tailored report outlining the funding opportunities available to support your innovation and growth.
R&D tax credits, grants, Patent Box and R&D allowances are all schemes are designed to help ambitious businesses like yours thrive. Don’t leave potential funding untapped—it could be the key to fuelling your next big idea.
Why should you consider Grant funding?
Grant funding provides a unique opportunity to accelerate your business growth by securing financial support for your innovative projects. Below are our top five reasons why you should consider R&D Grant funding.
In an initial consultation, we’ll determine if your business is eligible for R&D tax credits. We will clarify any legal provisions and seek the necessary financial information to initiate your claim.
Before we submit your claim, you’ll see a final version of your comprehensive R&D report. We will handle any HMRC inquiries and provide ongoing support, including record-keeping guidance for future claims.
Before we submit your claim, you’ll see a final version of your comprehensive R&D report. We will handle any HMRC inquiries and provide ongoing support, including record-keeping guidance for future claims.
Before we submit your claim, you’ll see a final version of your comprehensive R&D report. We will handle any HMRC inquiries and provide ongoing support, including record-keeping guidance for future claims.
Before we submit your claim, you’ll see a final version of your comprehensive R&D report. We will handle any HMRC inquiries and provide ongoing support, including record-keeping guidance for future claims.
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