The UK Patent Box

The Patent Box is available to all companies who:

• Hold or exclusively in-license a granted UK or European patent; and
• Meet the substance requirements of the regime – the development and active ownership conditions.

The first step is to establish how a company’s QIPR maps to its income that falls into one of the following categories:

• product and bespoke spare parts sales,
• royalties, milestones and licence fees,
• patent sales,
• damages for infringement and other compensation payments,
• services income or income from patented processes

19% is the main rate of Corporation Tax

10% is the Patent Box tax rate

Further adjustments are required to determine the company’s profit attributable to its patents. This is the profit that is eligible for the 10% rate of tax.

Deloitte’s Gi³ Patent Box team has extensive experience in supporting businesses to identify the availability of the Patent Box relief across a variety of industries, working alongside our colleagues in the R&D tax team.

Patent Box relief can be complex. As the UK’s market leading team in this area, Deloitte’s Patent Box team includes dedicated professionals with financial, patent and scientific backgrounds who can bring their insights on the applicability of the Patent Box relief to your business.

Each claim process is bespoke to the claimant company, and can depend on many factors such as industry sector, size, resources and existing systems. We work with our clients to prepare their claims, and ease the burden of the claim preparation process, while implementing the most relevant methodology.

The benefits we offer include:

Technical teams
Our teams have worked with businesses since the inception of the Patent Box regime to prepare and support their Patent Box claims, giving us unrivalled technical know-how. Our team has worked with HMRC on the practical implementation of the changes to the Patent Box regime for UK businesses.

Deep technical insights
Our Patent Box tax professionals work with patent attorneys, scientists and software specialists, enabling us to better understand your business and effectively work with your professionals. Our team is experienced in many sectors such as: biotechnology, pharmaceutical, manufacturing, petrochemical, aerospace, chemical, software (including FinTech) and utilities.

IP Advisory
Our Patent Box team works with Deloitte's market leading IP Advisory team who advises on IP strategy, IP management and provides transactional services across a variety of market and technology sectors. This collaboration enables us to provide a wide range of services when advising our clients on optimising their patent portfolio and capitalisation of intangible assets.

Intellectual property
Our Patent Box Team also works with Deloitte’s market leading IP team whose clients are some of the world’s most innovative companies and handle business critical IP issues in rapidly digitalising industries such as financial services, software and services, retail, media and entertainment. The team can will help you understand how the IP ecosystem works, how to enforce your rights and how IP can be used to drive your business forward.

Technology enabled
Our work leverages technology, enabling efficient claims preparation processes.

Global reach
The international focus of our Gi³ practice helps businesses identify incentive opportunities on a global basis.