A clear picture

Caroline Walton, Nigel Holmes and Raj Ghose look at the misconceptions around the Patent Box, and provide clarity on the benefits

Background to the regime

The UK Patent Box became effective from 1 April 2013 with legislation governing the regime contained within CTA 2010 ss 357A-357GE Part 8A.

The Patent Box was introduced to incentivise companies to continue to carry out innovative activity within the UK by taxing profits resulting from specific categories of intellectual property (IP) arising from R&D activity, at a preferential rate.

The Patent Box is intended to operate in harmony with the R&D SME and RDEC regimes which also reward companies carrying out innovative activity.