Patent Box Statistics
£342 million less tax! The Patent Box shows its worth.
Data only just published by the HM Revenue and Customs in the UK indicates that during the first year of operation of the Patent Box (April 2013 to March 2014), 700 UK businesses claimed around £342 million in corporation tax relief.
The government introduced the Patent Box scheme with the specific aim of fostering and encouraging innovation in the UK in order to stimulate economic growth. Under the Patent Box legislation, the corporation tax on a percentage of the profit made on sales of a product incorporating a patented invention is payable at a reduced rate. The tax relief available has been phased in and the lowest rate, which will be available as of 1st April 2017, is 10%. The possible tax savings over the life of a patent can potentially be substantial, especially for commercially successful products or processes.
The statistics show that the majority of companies claiming Patent Box relief were categorised as large or medium enterprises, and that 60% of claimants were in the manufacturing industry. However, it is apparent that a growing number of smaller companies are taking advantage of the system.
If you are interested in knowing more about the Patent Box and whether you may be entitled to claim, please contact us for further information.