The Patent Box incentive was first launched in 2013 and was created to encourage companies to enhance their profits on their patented products and services, providing a 10% tax rate on anything you sell that includes a patent. We can provide you with all the advice you need, explaining which kind of intellectual property is eligible, which income will qualify, how much your claim will be worth and how any expenses will be calculated. We can also help you to adapt your business model to raise your level of qualifying income and help you obtain further intellectual property rights.
Our vast experience in this field enables us to present claims to HMRC in the simplest way possible and advise you on which aspects of your claim are the most likely to be successful before it is made. We can also help you if you have licensed-in patents from other businesses. Once you have met the conditions attached to the Patent Box initiative, you can cut your Corporation Tax bill substantially. You will need to be a profitable business that pays Corporation Tax to qualify and will need to hold the patent because you developed and registered it or had the rights granted to you by another organisation.
Significance and Development
There are two main conditions involved in the Patent Box initiative, which are significance and development. Significance relates to what makes the product distinctive compared to others on the market and can refer to the development work involved in bringing it to the market and the time invested in the project. The development condition can be linked to products that use the patented product or service or simply the product or service itself.
Income that is allowable includes profits arising from selling the product or service, infringement damages, licensing income, selling the patented rights and the development of a patented article for a valuable profit-generating process.
Why Perrigo Consultants?
At Perrigo Consultants, we can assist you with your Patent Box tax relief claims, ensuring you’re making the most of every PB opportunity available to you. If you receive income from any products or services that have patents attached to them, we can advise you on whether you’ll be eligible to make a claim to reduce your Corporation Tax spend.
Claiming the relief is a relatively simple process when the conditions are met and you have the support of experienced Patent Box experts such as Perrigo Consultants. You will need to contact HMRC to inform them you are interested in using the scheme. We can assist you with the application process and you will need to make your claim within two years of the end of the accounting period when the profit was generated.
Choose Perrigo Consultants to receive the Patent Box tax relief you’re entitled to. We can:
• Help you reduce tax on patented products to 10%
• Advise you on what does and doesn’t qualify
• Identify ways to change your business model and benefit from the relief
• Help you build a compliant claim.