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Tax and finance · Tax explainer

Patent Box Relief Explained

What Patent Box relief is, who it can apply to, and what has to be in place first.

By Chris G Jones · · 3 min read

What Patent Box does

Patent Box is a UK regime that can apply a lower rate of corporation tax to profits attributable to qualifying patented inventions.

General information only. Whether it applies, and what it is worth, depends on your patents, profits and how they are attributed.

Who it tends to suit

It is narrower than R&D relief and needs groundwork.

  • Companies holding or exclusively licensing qualifying patents
  • Businesses earning profit clearly attributable to patented technology
  • Companies already documenting development work properly

Next step

If you hold patents and have never looked at this, it is worth a specialist review. Patent Box interacts with R&D relief, so they should be considered together.

Reclaim Tax UK covers both. No claim is guaranteed and eligibility must be assessed on the facts.