The Patent Box and Corporation tax increase

The Patent Box offers companies in the UK the opportunity to reduce their Corporation Tax rate to 10% on profits attributable to innovative products and processes that are protected by a UK or European patent. Its aim is to incentivise and reward the active exploitation of patented technology in the UK to support business investment and drive economic growth.

From April 2023, the UK Government intends to raise corporation tax to 25% (from the current rate of 19%). This increase offers companies an even greater incentive to take advantage of the Patent Box with a view to reducing their corporation tax burden.

We encourage companies to review their patent portfolio to determine if they have patents covering any commerically exploited products or processes that would justify making a claim under the Patent Box scheme, and to also consider whether it may now be worth filing patent applications for any new and potentially innovative products in the pipeline that have not yet been publicly disclosed.