The UK Patent Box is a generous scheme that can yield significant savings for UK companies. By electing for Patent Box tax treatment, UK companies can benefit from a reduced rate of Corporation Tax of 10% on a proportion of profits derived from qualifying intellectual property (IP) rights.

The basic concept is straightforward but, as ever, there is some complexity in the detail. The purpose of this briefing note is to strip out some of that complexity and give companies a clearer idea of what they can do to ensure eligibility for, and maximise benefit from, Patent Box.

Research and Development (R&D) tax reliefs support companies that work on innovative projects in science and technology.  The work that qualifies for R&D relief should be part of a project to make an advance in science or technology.  There is some similarity with the requirements for a granted patent and companies may therefore wish to avail of both the R&D tax relief and Patent Box schemes.

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