Patent Box: An untapped opportunity

Earlier this month, the Chancellor promised an additional £780 million investment in high-tech hubs across the country, which followed the Prime Minister’s announcement of £180 million to support centres in the North East just last month. The significant investment we have seen the government make in UK innovation over the past 12 months demonstrates the key role it plays in building a stronger economy.

So, despite the government’s best efforts, why are so many UK businesses failing to benefit from this investment? One significant opportunity for businesses is HMRC’s Patent Box regime, a tax scheme used to incentivise R&D by taxing patent revenues differently from other commercial revenues. Patent Box is designed to reward companies that develop, retain and exploit patents in the UK, reducing Corporation Tax on profits direct from the products containing the patent to 10%.

 

Patent Box infographic

So, while the government investment for innovative businesses continues to grow, there is still a disconnect between the number of businesses which are eligible and those who take advantage of government funding schemes like R&D Tax Credits and Patent Box. For many the confusion surrounds how the various schemes can be used in conjunction with each other.

At MPA Group our proven track record has seen us work with innovative businesses to maximise the claim value available to them. Companies such as Morgana Systems and tp24, both of which we’re able to successfully claim as a result of our expert insight into their business and our in depth understanding of the multiple schemes available, such as R&D Tax Credit and Patent Box, and how they can work together.

With more and more businesses exploring how they can leverage the numerous R&D tax credit schemes available to them, we’ve answered some of the most popular questions surrounding Patent Box.

If you have any other questions about the Patent Box scheme, or want to know how MPA Group can help you make your claim, get in touch.