Patent Box Relief

Once technology has been developed and commercialised, the Patent Box regime offers significant Corporation Tax savings to companies on the profits they generate from qualifying intellectual property (IP).

Companies that elect into the regime benefit from an effective 10% rate of Corporation Tax on relevant profits. This is significantly lower than the main rate of 25% (applicable from April 2023, subject to small profits and marginal relief provisions subject to a small profits rate and marginal relief).

While the potential tax savings are substantial, the Patent Box regime is complex. At Johnston Carmichael, our specialists are on hand to help you through every step of the process - from assessing eligibility to submitting your claim.

Our Patent Box services

Economic feasibility studies

Before making a claim, we can help you evaluate the potential benefits and timings of relief available to your business. We’ll answer key questions such as:

• Does the company meet the gateway conditions?
• Is a Patent Box claim likely to result in meaningful tax savings?
• When are those savings expected to arise?
• Is now the right time for your business to elect into the regime?

Claim preparation and submission

Once eligibility is confirmed and a claim is deemed worthwhile, our specialist team will:

• Prepare the Patent Box calculation and supporting documentation
• Incorporate the claim into your Corporation Tax return
• Submit the necessary information to HMRC on your behalf

IP, patents, and licensing support

Whether you're considering applying for a patent, documenting intra-group licensing arrangements, or seeking to understand the legal process, we can:

• Connect you with trusted patent attorneys and IP lawyers
• Collaborate with your existing advisers
• Provide tax advice aligned with your current IP strategy, commercial objectives, and help you plan for the future

Patent Box health checks

Are you already claiming? We can review your existing claims to identify opportunities for additional tax savings and highlight any areas of risk or non-compliance.

Tax planning and advisory

We also provide tailored advice in scenarios such as:

• Business or group restructures
• IP transfers
• Preparing for a business sale
• Protecting and managing IP assets

There are lots of factors that can play a part in the amount of Patent Box Relief available to a company. We can help you to understand how these interact with the regime, so you can make informed decisions and integrate Patent Box considerations into your broader tax and business planning.

Get in touch

Whether you're exploring your first claim or looking to optimise existing relief, our team is on hand to help. Please don’t hesitate to reach out to a member of our team or complete our short enquiry form if you would like to discuss this further.