Patent Box Scheme: Reduce Tax on Innovation Income with FI Group

The UK’s Patent Box scheme offers a significant tax incentive for innovative companies. By applying a reduced corporation tax rate to profits earned from patented inventions, the Patent Box Tax Relief rewards businesses that develop and commercialise IP in the UK.

At FI Group, we help companies identify qualifying IP, calculate relevant profits, and prepare robust claims to maximise the benefits of this valuable regime. Combined with R&D Tax Relief, Patent Box can significantly enhance your innovation ROI.

What Is the Patent Box Scheme?

The Patent Box is a government initiative that allows companies to apply a reduced 10% corporation tax rate to profits earned from qualifying intellectual property (IP). This applies to income from:

• Licensing or selling patented products
• Product sales incorporating patented technology
• Patent-related services and royalties
• Patent infringement settlements or damages

To qualify, companies must:

• Be liable to UK Corporation Tax
• Own or exclusively license a granted UK or European patent
• Have significantly contributed to the development or commercialisation of the IP