What is Patent Box Tax Relief?
In 2009, in an effort to further reward innovative companies, the UK Government announced an initiative called “the Patent Box”. This legislation gives a reduced effective rate of corporation tax to 10% for any companies making an income from patents.
The relief has been phased in from 1 April 2013 and the full benefit of the Patent Box has been available from 1 April 2017.
In 2015/16, a total of 1,160 companies claimed relief under the Patent Box with a total value of £754.3 million. The number of claims for 2016/17 so far is 1,025 with a value of £942.5 million, however there are still hundreds of eligible companies who have not claimed!