Patent Box – Manufacturers Take Note
Do you fancy halving your rate of corporation tax? The Patent Box is not just for scientists. Often it is manufacturers that benefit, though it is not restricted to any particular trade.
Launched in 2013, nationally the take-up of Patent Box has been slow but is expected to gather pace. The benefits are clear and we have saved tax already for a number of our clients using the new relief. Profits from a product that includes a patent, or a manufacturing process that is itself patented, will qualify for reducing amounts of corporation tax. Patented profits from 2017 will be taxed at 10% rather than the normal 20%.
It is black and white – if you have the patent, then identify the relevant profits, and save tax year after year on those profits. We are currently advising a client on calculating their Patent Box claim. Now that their patent has been recently granted, we can also go back to revise their previous year’s corporation tax return to claim tax relief on profits made since the earlier patent application date.
We can also put you in touch with experienced and independent firms of patent specialists if you are considering a patent.
For more information please contact a member of the Taxation Services team on 01904 464100 or firstname.lastname@example.org.