We’d love to learn more about your business and discuss how we might be able to help.
Patent Box
Rewarding your intellectual property (IP) investment
Partner with the UK’s leading specialist R&D tax adviser and discover how we can bring the expertise and skills we’ve developed advising innovative businesses to your Patent Box claim.
Patent Box relief rewards your intellectual property (IP) investment by helping to reduce your Corporation Tax rate on qualifying IP income to 10%. ForrestBrown can help your business unlock the full value of your patentable IP through our full-service consultancy.
With over a decade’s experience working with businesses to secure innovation funding, we are perfectly positioned to map and analyse patent tax relief opportunities alongside your existing R&D activity. Wherever you are in the process, ForrestBrown offers unmatched expertise to secure the funding your innovation deserves.
Who can claim Patent Box relief?
Patent Box should be considered by businesses who:
- are liable to UK Corporation Tax;
- hold or exclusively license-in a granted UK or European patent; and
- have undertaken qualifying development on this patent.
Find out more information and the answers to your questions in our Patent Box explained page.
Who we work with
We work with a wide range of finance professionals, tax teams and accountants to advise on Patent Box claims and to bust any common misconceptions on who might be eligible for it.
Our work spans a broad spectrum of industry, from medical devices and pharmaceutics to software and engineering, as well as anywhere else that patented IP might exist.
The value of Patent Box to your business
The benefit a business receives via Patent Box is ultimately dependent on how much of its profits are attributable to its patents.
Following the Corporation Tax rate rise on 1 April 2023 from 19% to 25%, Patent Box offers qualifying businesses a significant tax saving, resulting in a reduction in the Corporation Tax owed.
| Post 1 April 2023 | ||||
|---|---|---|---|---|
| Total trade profits | £250,000 | £500,000 | £1,000,000 | £1,500,000 |
| Corporation tax due at 25% | £62,500 | £125,000 | £250,000 | £375,000 |
| 50% of profits attributable to IP | £125,000 | £125,000 | £500,000 | £750,000 |
| Corporation Tax due after Patent Box | £12,500 | £25,000 | £50,000 | £75,000 |
| Total benefit | £50,000 | £100,000 | £200,000 | £300,000 |
Patent Box Claims with ForrestBrown
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1
Establishing eligibility
The first step is to establish that a business is eligible for Patent Box and that it meets the substance requirements of the regime – the active ownership condition and the development condition.
Our project team will undertake an initial assessment so we can understand the fundamentals of your patent position. Once we have established eligibility, our specialists will begin to review the more complex details relating to qualifying expenditure.
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2
Mapping qualifying expenditure
Next, we stream the business’s income and expenditure to determine how its profits map to its relevant product sales, royalties and licence fees, patent sales, infringement income and notional royalties on processes or services.
Our team of chartered tax advisers and accountants have the technical firepower to determine the extent to which your profits relate to your IP activity, extracting efficiencies and minimising risk.
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3
Calculating the R&D fraction
Further adjustments are made to track and trace these profits back to R&D activities attributable to its patents. This is the profit that is eligible for the effective 10% rate of tax.
Our sector specialists have in-depth industry experience and have unique insight into how R&D activities are undertaken across a range of sectors. Working with our tax team they help to identify relevant IP income to the level of R&D expenditure incurred to develop IP within a claim or project.
Read more on the Nexus R&D Fraction.
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4
Beyond your claim
ForrestBrown is your trusted partner for best-in-class innovation incentive advice. We’re passionate about the transformative power of Patent Box relief for your business and the wider economy.
Your innovation is unique and so are your business needs. Our approach is consultancy based, meaning we provide a range of services to suit your requirements, including claiming R&D tax credits, Capital Allowances, Grants, HMRC enquiry support, our accountant partner programme and beyond. We don’t take a one-size-fits all approach, and we understand how the wider innovation incentive toolkit open to businesses can be used strategically and successfully.
How much does it cost to claim Patent Box relief with ForrestBrown?
Our fee is typically calculated as a percentage of the benefit you receive and is contingent on our success. Alternative fee models are also available on request.
Patent Box and IP consultancy
Whatever phase your business is in – scale up, growth or exit – our consulting service can offer the support you need. As a scale-up, you might benefit from our consulting team reviewing your innovation portfolio to identify commercial IP and eligibility for Patent Box.
For those in the growth or exit phase, we can share insights on how Patent Box interacts with the global minimum tax rate and review exclusive licenses in line with current legislation, as well as undertaking reviews of group structure and third party transactions to identify IP and agreements in place.
We also take a global perspective and can advise on the availability of similar reliefs in other jurisdictions, in addition to the interaction of Patent Box with Pillar Two in international groups.
Amplifying your innovation
Patent Box and R&D tax relief work in synergy to amplify the benefits of your innovation.
Our multidisciplinary team are experts in their field and speak your language. We’d love the opportunity to discuss how we can support your business.
Claiming Patent Box and R&D tax relief
Research and development (R&D) tax relief and the Patent Box work in conjunction with each other, incentivising the full innovation lifecycle of a UK business.
Find out more about combining R&D tax credits and Patent Box relief.
ForrestBrown is the UK’s leading specialist innovation tax adviser. Our expert team is experienced across all R&D intensive sectors. We can quickly understand how your underlying technology, products, projects and processes interlink, meaning we can extract practical efficiencies that expand to fuel the growth of your company or make your project budget stretch further,
We are passionate about the transformative power of innovative incentives for your business and the wider economy.
Our Patent Box team
Our Patent Box advisory team is led by Angela Banerjee, who has over 12 years’ experience advising on innovation incentives, including R&D tax relief and the Patent Box.
Angela previously spent a decade within Big Four and specialist R&D firms in a range of advisory and consulting roles.
Our Patent Box team draws on decades of experience working with innovative businesses across various industries to ensure their investment in intellectual property (IP) is rewarded. We bring together chartered tax advisers, lawyers and technical experts to help you get the most out of your patents.
Success stories
Steve Gardner, Director, Gardner Services
ForrestBrown cut through the complexity to provide the calculations we needed. The team were professional and efficient, overcoming any barriers and providing reassurance that our submission is based on robust methodology.
Private equity backed managed cloud services business
“When we spoke to ForrestBrown, the difference was clear. They’re a specialist team who provide an end-to-end service. They’re flexible and proactive, which makes claiming easy. I’d certainly recommend their service to other businesses.”
Konrad Brodaczewski, Vice-director, Grena Limited
ForrestBrown’s team were knowledgeable which meant we did not have to become experts in the field ourselves. They were helpful in providing us with all necessary information which has made claiming Patent Box relief a very easy and smooth process.
Finance Director, Pharmaceuticals group
ForrestBrown helped us to bridge the gap between finance and scientific matters and to put together successful RDEC and Patent Box claims with confidence in their completeness and compliance.
Google review
ForestBrown’s ability to grasp the essence and innovation of your business quickly makes for a very professional, friendly and burden free claim experience. Highly recommended.
Our latest Patent Box insights
Reward your IP investment
Our approach is rigorous and proactive to ensure your company is able to maximise the retention and commercialisation of its IP through accessing Patent Box tax relief.
We’d love to learn more about your business and discuss how we might be able to help.
- hello@forrestbrown.co.uk
- Telephone
- 0117 926 9022