Patent Box

Imagine. Invest. Invent.

Partner with the market leading R&D tax specialists and discover how you can amplify the benefits of your innovation with Patent Box tax relief.

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.

As the UK’s leading innovation tax specialist, 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.

Ready to get started

We’d love to find out more about your business and discuss how we might be able to help. Speak to our expert team today.

What sets ForrestBrown’s Patent Box service apart

In your language

We speak your language and are proactive which means we are efficient, saving you time.

Technical firepower

The best in the industry at managing your risk and complexity, ensuring full value is captured.

 

On your terms

ForrestBrown excels at providing a tailored, consultancy approach, bespoke to your needs.

 

Fully realise the benefits of your IP

We’d love to find out more about your Patent Box needs as well as your wider business.

Speak to your expert team today.

Telephone
0117 926 9022

Who can claim Patent Box relief?

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.

Who can benefit from Patent Box?

Like R&D tax relief, Patent Box claims are made by businesses in all different types of sectors. HMRC statistics shows that claims made in 2020-21 came from the following sectors:

Manufacturing
52%
Wholesale and retail trade
19%
Professional, scientific and technical
12%
Admin
5%
Information and communication
4%
Other
8%

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.

With the main rate of Corporation Tax due to rise from 19% to 25% from 1 April 2023 onwards, Patent Box offers qualifying businesses a significant tax saving, resulting in a reduction in Corporation Tax owed.

Before 1 April 2023
Total trade profits £1,000,000 £10,000,000 £50,000,000 £100,000,000
Corporation tax due at 19% £190,000 £1,900,000 £9,500,000 £19,000,000
50% of profits attributable to IP £500,000 £5,000,000 £25,000,000 £50,000,000
Corporation Tax due after Patent Box £145,000 £1,450,000 £7,250,000 £14,500,000
Total benefit £45,000 £450,000 £2,250,000 £4,500,000
After 1 April 2023
Total trade profits £1,000,000 £10,000,000 £50,000,000 £100,000,000
Corporation tax due at 25% £250,000 £2,500,000 £12,500,000 £25,000,000
50% of profits attributable to IP £500,000 £5,000,000 £25,000,000 £50,000,000
Corporation Tax due after Patent Box £175,000 £1,750,000 £8,750,000 £17,500,000
Total benefit £75,000 £750,000 £3,750,000 £7,500,000

Patent Box Claims with ForrestBrown

  1. 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.

  2. 2

    Mapping qualifying expenditure to relevant IP profits

    Next, we stream the business’s income and expenditure to determine how its profits map to its relevant product sales, royalties and license 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.

  3. 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.

  4. 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.

Amplifying your innovation

Patent Box and R&D tax relief work in synergy to amplify the benefits of your innovation.

integrated approach to innovation incentives

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.

Both are forms of tax relief and the key difference between the two regimes is that R&D tax incentives provide tax relief and / or a credit based on a business’s R&D spending, while patent box provides a lower effective tax rate on profits attributable to UK or certain European patents.

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.

 
 

Assembling the best Patent Box team for your business

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.

James Dudbridge LLB

Director

  • Leads our tax advisory practice.
  • Solicitor specialising in corporate and personal tax.
  • Over a decade of experience in tax law.
James Dudbridge

Angela Banerjee ATT

Senior Tax Manager

  • More than a decade of experience within Big Four and specialist R&D firms.
  • Dedicated support to Scottish businesses.
  • Experienced in helping businesses to benefit from R&D tax relief and the Patent Box.
Angela Banerjee

Reward your IP investment

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.