Patent Box

Introducing Patent Box

What is Patent Box?

Patent Box is a tax- incentive scheme introduced by the UK Government and overseen by HMRC. It allows companies to apply a lower Corporation Tax rate to profits derived from patented inventions and certain other intellectual property (IP) rights. It helps businesses maximise the financial benefits of their IP.

There are several criteria that need to be met to be eligible to make a Patent Box claim, they are:

To be a UK registered company
To be paying Corporation Tax in the UK
To have a granted UK or European patent
To be making profit relating to said patent
To have been responsible for the R&D that resulted in the patented invention

We can help you with your Patent Box claim

It requires expertise to understand both the full scope of the Patent Box claim and the relevant IP assets held by the business. and how this all relates to the profits generated. That is why at RDA, we are not only tax experts, but IP experts too.

Your Patent Box submission cannot be a simple matter of form-filling. Only by truly understanding the scope of the Patent Box legislation can you realise and communicate the actual value of your patent portfolio to HMRC. That is why we pride ourselves on the unique consultancy approach delivered by our IP and tax experts.

With RDA, in addition to the preparation and submission of your Patent Box claim, you will have access to:

a dedicated Client Manager on call
a dedicated IP Manager
a technical report written by us, outlining all you need to know about your patent portfolio and providing insight into where your patent(s) will sit within the IP landscape
Patent Box best-practice coaching and workshops

PATENT BOX

Patent Portfolio Management

Patent Portfolio Management is a strategic service that helps businesses oversee, optimise, and maximise the value of their patents. It ensures that a company’s patents align with its business objectives, reduce risks, and generate financial returns.

Frequently asked questions

When should a company consider patent portfolio management as a service?

Managing Multiple Patents: If a company has several patents across different markets and needs a structured approach to maintenance, enforcement and monetisation, a portfolio approach is advisable.
Optimising IP Strategy: It can ensure patents support business goals, whether for competitive advantage, licensing, or litigation protection.
Cost Control & Efficiency: Patent Portfolio Management balances costs against potential returns when managing patent renewals, filings, and international protection.
Mergers, Acquisitions, or Investment Rounds: The value of a company’s IP is worth assessing for due-diligence purposes.
Competitor and Market Monitoring: By tracking industry trends, a company can avoid infringement risks.

What are the benefits to patent portfolio management?

Maximises IP Value: Ensures patents are effectively used for protection, licensing, or revenue generation.
Cost Efficiency: Avoids unnecessary filings and renewals while prioritising high-value patents.
Risk Mitigation: Reduces the likelihood of IP disputes and infringement issues.
Strategic Decision-Making: Aligns IP strategy with business goals, market opportunities, and competitor activity.
Enhances Innovation: Identifies gaps in the portfolio, guiding R&D efforts toward new patentable technologies.

What are the benefits to understanding and protecting the IP created by my business?

Among the advantages that a company can take from effective IP protection are:

Competitive Advantage: IP protection shields unique innovations, branding, and creative works from being copied by competitors. It establishes market differentiation, making it harder for others to replicate products or services.
Revenue Generation: It enables businesses to license, sell, or franchise their IP for additional income streams. Patented IP can also qualify for tax benefits, such as the UK Patent Box, reducing corporate tax on profits from patented inventions.
Legal Protection & Risk Mitigation: Patents prevent unauthorised use or infringement of valuable assets. They strengthen legal standing in disputes and make enforcement easier if competitors violate IP rights.
Enhanced Business Valuation: A company with protected IP can benefit from increased valuation for investors and in mergers or acquisitions. It also demonstrates innovation and long-term growth potential to stakeholders.
Cost Efficiency & R&D Optimisation: By understanding the prevailing IP landscape, businesses can avoid wasting resources on duplicating existing inventions. Patent landscaping can also guide R&D efforts by identifying gaps in existing IP and patent landscapes.
Stronger Brand & Customer Trust: Protecting trademarks and branding prevents counterfeit products from damaging a company’s reputation, enhancing credibility and trust with customers and partners.