Patent Box

Part of the Government's growth agenda

The aim of the Patent Box is to provide an additional incentive for companies to retain and commercialise existing patents and to develop new innovative patented products. This should encourage companies to locate the high-value jobs associated with the development, manufacture and exploitation of patents in the UK and maintain the UK's position as a world leader in patented technologies.

The Patent Box allows companies to apply a 10 percent rate of corporation tax from 1 April 2013 to profits attributable to qualifying patents*. Other non-qualifying profits in these companies will continue to be taxed at the MRCT.


*NB: the relief has been phased in until 2017 when it is applied at the full relief rate. The Patent Box allows a 10% tax rate on profits derived from any products that incorporate patents.

It is easy to assume that a Patent Box claim is all about the calculations; it isn't.

Reviewing and planning Intellectual Property at a strategic level can significantly and positively impact the claim.


Patent Box changes

Companies holding qualifying Intellectual Property (IP) and generating qualifying income are likely to benefit from the Patent Box.

Changes to the original regime, to meet the requirements of Base Erosion Profit Sharing ("BEPS"), mean claims on profits after 1 July 2016 require substantive economic activity in the UK. This new approach, known as the nexus approach will be phased in with Grandfather rights applying in some cases to existing claimants allowing them to claim under the original regime until 2021

Contact us for a detailed discussion

Preparing a claim

MMP adopts an IP asset led approach to identify the patent estate, qualifying income and all costs, along with any contribution from brand values or marketing royalties, before the final Patent Box profit and resulting tax deduction can be defined.

It is easy to assume that a Patent Box claim is all about the calculations; it isn't. Reviewing and planning Intellectual Property at a strategic level can significantly and positively impact the claim.

A detailed "track and trace" of patents, technology, products, costs and revenues is required in order to submit a claim. The Nexus formula and the patent box formula are used to apply all the data collected in the track and trace process.

Working with MMP

Everything we do we believe challenges the status quo of our industry. We believe in thinking differently. The way we do that, is to think all the time about you and how you would like to work and how you would design our service to best meet your needs and then that's what we believe in delivering.

The MMP team includes tax experts and qualified technologists from a wide variety of backgrounds and deep domain experience. By combining our skills and abilities, we can do more and achieve better results. From the technical interviews we have with your team, we create a comprehensive report to submit to HMRC. We take the time to really get to know your company, the technology and your needs.

No idea where to start? Not sure you're getting the best value from your existing approach?

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