Patent Box
HM Revenue & CustomsUK-wideVaries
Who can apply
A company liable to Corporation Tax may elect into Patent Box for qualifying profits if it owns or exclusively licenses qualifying patent rights and has undertaken qualifying development. The relief applies a 10% rate to qualifying profits.
What it funds
Reduces corporation tax to an effective 10% on profits attributable to patented inventions and certain other IP rights.
How to apply
Elect into the regime in the CT return within 2 years of the end of the relevant accounting period; calculate relevant IP profits using the prescribed method.
Evidence you'll need
- Patent grants or exclusive licences
- IP income streams analysis
- R&D development history
Last checked against the official source: 3 Jul 2026. Scheme parameters are set by the funder and can change — verify before applying, or let us do it for you.
Ask about eligibility
Plain-English answers about this scheme's published criteria — not application advice.
Related schemes
R&D Tax Relief (Merged Scheme & ERIS)
HM Revenue & Customs
Corporation tax relief on qualifying R&D expenditure. Merged scheme gives a 20% above-the-line credit (~15-16% net); loss-making R&D-intensive SMEs can claim enhanced support (ERIS) worth up to ~27p per £1 of qualifying spend.
Invest NI Grant for R&D
Invest Northern Ireland
Supports Northern Ireland businesses at every R&D stage, from feasibility to development — typical intervention 40-50% for SMEs.
Knowledge Transfer Partnerships (KTP)
Innovate UK
Funds a high-calibre graduate (Associate) plus academic team embedded in your business for 12-36 months to deliver a strategic innovation project. SMEs typically pay ~33% of project costs.