What is the Patent Box Scheme?

The Patent Box tax relief is a UK government incentive, introduced in 2013, that encourages companies to retain and commercialise intellectual property in the UK. It allows companies to apply an effective 10% Corporation Tax rate to qualifying profits attributable to patented inventions, rather than the normal Corporation Tax rate that would otherwise apply.

Patent Box Tax Relief Explained

The Patent Box scheme is an HMRC approved scheme that can reduce your Corporation Tax rate.

Patent Box remains underused by smaller companies: HMRC estimates that large companies received 95% of the total relief in 2023–24, despite representing only 28% of companies electing into the scheme.

Who Qualifies for the Patent Box Scheme?

To qualify for the patent box there is a list of requirements:

Be a UK limited company
Be subject to corporation tax
Own a qualifying patent or hold an eligible exclusive licence
Have undertaken qualifying development by creating or significantly contributing to the invention, or by carrying out significant development of the invention or a product or process incorporating it.
Generate qualifying income from exploiting the patented invention. Only the proportion of relevant profits calculated under the Patent Box rules receives the reduced effective rate

Can I Get a Patent on Existing Product?

Potentially. An existing product may be reviewed to identify opportunities for a new and inventive technical improvement. Any patent application would need to satisfy the relevant legal requirements, including novelty and inventive step, and should be assessed by a qualified patent attorney before public disclosure.

Optima can support the technical and product-development work, while patentability and filing strategy should be advised on by a qualified patent attorney.

Ecodeck manufacture eco-friendly ground reinforcement decks and were looking to patent their product for IP protection, marketing and Patent Box. We reviewed the product and designed a multipurpose fixing point that is now patented and the company has saved over SIX FIGURES in corporation tax.

Find our more in the case study.

Patent Box Tax Relief

Did you know there is a scheme that can help reduce your corporation tax?

Can I Get a Patent on Existing Product?

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