The aim of the Patent Box is to provide an additional incentive (in the form of reduced corporation tax) for companies to retain and commercialise existing patents and to develop new innovative patented products. The relief allows UK business to pay corporation tax at 10% on profits from UK or EU patents.
The amount of tax relief claimed by businesses through the patent box scheme jumped 25% in 2016/17, reaching £942.5m.
However, the Organisation for Economic Co-Operation and Development (OECD) figures show the UK only invests 1.7% of GDP on Research & Development (R&D) activities.
If you would like assistance with either patent box, R&D or to discuss any corporate tax issues, contact us on Rugby 01788 539000 or Leicester 0116 261 0061.