Patent Box Regime In The UK

The Patent Box is a special corporate tax regime in which the patent revenues are taxed differently from other commercial revenues. This was first introduced in Ireland in the early 1970s wherein there was an absolute relief of tax from licenses that were patented in Ireland.

The United Kingdom introduced a Patent Box scheme in April, 2013 taxing qualifying Intellectual Property at a reduced rate of 10% rather than the normal corporate tax rate of 20%. The Patent Box in the UK is a tax incentive regime designed to encourage companies to keep and commercialize their patents and innovations by reducing the UK tax paid on those profits. The United Kingdom Government wished to support the high-value growth in UK public limited company through a competitive tax regime that supports UK R&D from conception to commercialization. The Patent Box forms a key part of this strategy by encouraging companies to retain and commercialize their patents and R&D in the UK. The