Patent Box
HMRC
What it funds
Reduces corporation tax to an effective 10% on profits attributable to patented inventions and certain other IP rights.
Who can apply
Company liable to UK corporation tax, owning or exclusively licensing qualifying patents (UK IPO, EPO and certain EEA offices) and having undertaken qualifying development.
Key criteria
- UK corporation tax payer
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 within the last 7 days. Scheme parameters are set by the funder and can change — verify before applying, or let us do it for you.
Related schemes
Innovate UK Grant Competitions
Innovate UK
Rolling portfolio of themed R&D grant competitions for UK businesses, typically funding 25-70% of project costs across feasibility, industrial research and experimental development.
Knowledge Transfer Partnerships (KTP)
Innovate UK / UKRI
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.
R&D Tax Relief (Merged Scheme & ERIS)
HMRC
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.