Patent Box

What is Patent Box Tax Relief?

The Patent Box is a UK corporation tax relief enabling companies to apply an effective 10% rate to profits derived from qualifying patented inventions and certain other IP rights. Introduced in 2013, it rewards companies that develop, own or exclusively license qualifying patents.

Against the 25% main corporation tax rate, Patent Box can cut the effective rate on qualifying profits to 10% — a 60% reduction. The election must be made within two years of the end of the relevant accounting period, so reviewing eligibility promptly protects the claim.

Patent Box Eligibility Requirements

Qualifying IP rights: patents granted by the UK Intellectual Property Office (UKIPO), the European Patent Office (EPO) or certain other qualifying offices, owned or exclusively licensed by the company.

Active development: the company must have actively developed the patented invention or performed significant development work.

Qualifying income: profits from sales of patented products (including products incorporating a patented component), licensing income and proceeds from patent rights sales.

Nexus requirement: the 'nexus fraction' links the benefit to your own development activity, so relief follows genuine R&D substance within the company or group.

Patent Box Calculation and Tax Savings

The calculation identifies relevant IP profits attributable to qualifying rights, deducts a notional routine return (typically 10% of certain costs), strips out profits attributable to marketing assets, and applies the nexus fraction.

Example: a company with £1 million of qualifying patent profits paying the 25% main rate could see Patent Box reduce the tax on those profits from £250,000 to £100,000 — a £150,000 annual saving.

Our Patent Box Services

Eligibility assessment: review of your patents and applications, development activities, income streams and nexus position.

Calculations and optimisation: accurate relevant IP profit calculations, optimised routine return and marketing asset deductions, and structuring of IP ownership and licensing to maximise relief.

Compliance and HMRC reporting: Patent Box computations for your corporation tax return, elections made in time, records maintained to support claims, and HMRC enquiries handled.

Strategic IP structuring: group planning, licensing arrangements that satisfy the exclusivity requirements, and integration with R&D relief and capital allowances.

Patent Box and R&D Tax Relief

Companies can claim both. R&D relief delivers upfront benefit on qualifying development spend, while Patent Box delivers long-term savings on the profits from commercialised innovations — and because the nexus fraction is built on your R&D record, coordinating the two claims strengthens both. We run them together.

Why Choose Acumon for Patent Box

Specialist expertise in Patent Box calculations and HMRC compliance, integrated tax and IP understanding, proactive documentation that reduces the risk of challenge, and strategic structuring that maximises relief while keeping you compliant.

What You Get With Acumon

• Eligibility assessment of patents and development activities
• Elections filed within the two-year deadline
• Relevant IP profit calculations and optimisation
• Nexus fraction compliance
• Patent Box computations for corporation tax returns and HMRC enquiry handling
• Coordination with R&D relief and group IP structuring

Why Acumon for Patent Box?

• Specialist tax team experienced in Patent Box calculations and HMRC compliance
• Patent Box claims prepared alongside R&D relief claims by the same team
• Integrated tax and intellectual property understanding

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.