Can your company pay a reduced rate of 10% Corporation tax?
Mark Gibbons, Senior Access to Finance Specialist for Lancashire SMEs, considers the benefits of HMRC’s ‘Patent Box’ scheme.
The Patent Box scheme is intended to encourage the development of new patented inventions in the UK. If a company is making a profit on any patented inventions, they will be eligible for a lower effective Corporation Tax rate of 10% on relevant profits.
To be eligible the business will need to:
- Own the patent outright or potentially derive income from the licensing of a patent
- Have undertaken qualifying development on the patent
We would encourage any businesses that has new and innovative products or services to look into this scheme.
We often speak with SMEs who need to patent their innovations, which can be a costly and time consuming process. In these cases we are able to explain and signpost them to the Patent Box scheme, or our partners and advisers who can provide support in this area. This can retain valuable capital in the business to continue their research and development.
Getting expert guidance can really help - so if you are an innovative businesses with a patent and looking to benefit from reduced corporation tax, get in touch with the team make a real difference.