Can Patent Box Help Keep The Lights On?

The UK energy sector is undergoing a transformative shift, with innovations in renewable energy, carbon capture, and advanced drilling technologies driving progress. Patent Box, a tax relief scheme introduced in 2013, is a critical, but underutilised tool that offshore and energy companies can leverage to reduce their tax liability while fostering innovation.

By paying just 10% corporation tax on profits derived from patented inventions, companies in the energy industry can use additional capital to enhance their R&D efforts and bolster their IP portfolio; essential ingredients for staying competitive in a changing market. The UK government has positioned Patent Box as a vital incentive for retaining high-value research and development activities domestically, which can help the energy industry improve profitability and reinvest in cutting-edge technologies.