Patent Box

Patent Box attracts innovators to the UK by reducing corporation tax rate from patents to about 10%.

We advise clients on how to:

• Implement and manage Patent Box correctly
• Integrate Patent Box relief into your wider corporation tax planning using for example:
  • Research and Development (R&D) Tax Credits
  • Capital Gains Tax Relief ( CGT )

Patent Box Case Study: Pharma Engineering

The Patent Box problem

Pharma, a successful Oxford based, engineering company has developed several products it sells worldwide. But they also needed to continue to invest in its products – whilst rewarding the owners for their efforts.

How we helped

We advised on:

• Remuneration structures to optimise the combined effects of R&D tax credits and Patent Box.
• The potential impact of changing rules.
• Protecting and maximising future claims so they could continue to minimise their taxes.

The result

• Pharma didn’t need to pay tax.
• The increased cash flow was used to re-invest in growing the company.
• Pharma’s value grew, and the owners were able to extract money from the company.

Next Step

Contact us to discuss using Patent Box to save taxes.