Newly released government statistics present a positive picture of the number of innovative businesses already benefiting from UK Patent Box Tax relief – the generous scheme which provides an effective 10% corporation tax rate (the current rate is 20%) on profits derived from the sales of patented inventions.
The figures show how in the 2014-15 fiscal year (the second year for which Patent Box tax relief was available) there was an increase in uptake from innovative companies protecting their intellectual property and obtained patents to 1135 claims (828 in 2013-14) making claims amounting to £651m. Not surprisingly, most of these came from the manufacturing sector at 54.2% of the claims received.
As is the case with Research and Development reliefs, Patent Box claims were made across a range of industries, from construction to health and education. Innovative work in a range of industries leading to significant tax savings.
Any company that protects its intellectual property not only can benefit from Patent Box tax relief, but also protects its market position, increases the value of the business on sale, may be better able to obtain funding and improve its marketing strength and company image.
Of course, there will have been many more companies than that making profits on patented inventions that could have claimed but did not (or since then have not). But in my view the figures certainly represent a positive picture of innovative companies accessing and maximising the tax savings that are available to them following and throughout their innovative work.
Shorts’ Innovation Taxes Group can help with our simple two-stage process for preparing UK Patent Box tax relief claims (an initial appraisal to determine the potential benefit of a claim followed by, if deemed to be beneficial by our client, a full claim). Already we have saved our clients thousands of pounds in tax by obtaining Patent Box relief.
Support with Patent Box Tax Relief
If you would like to find out more about how you company could maximise your tax savings through your innovative work, please do not hesitate to contact us to arrange your free consultation.
Other recent articles:
- Pay tax at an effective rate of 10%
- The Benefits of claiming Patent Box and how to access relief
Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
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