How far back can you claim on the Patent Box Scheme?

Claiming on the Patent Box Scheme

Companies must elect into the Patent Box Scheme within two years after the end of the accounting period in which they received the relevant income.

I have only just filed my patent, I am making sales, but it is not granted yet?

The identified Patent Box Scheme tax benefit is identified each year on the sales of the product encompassing the IP, but is not claimed. Once a Patent has been granted, the accrued benefit is all claimed within the next tax return. A six year window is allowed for the granting of rights.

I don’t have a patent, what other types of I qualifies for the Patent Box Scheme?

There are a number of other qualifying intellectual property rights that can be attributed to Patent Box. These include IP such as regulatory data protection (also called ‘data exclusivity’), supplementary protection certificates and plant variety rights.

The Patent I am looking to exploit is American, can I use this for the Patent Box Scheme?

No, only Patents granted from the UK Intellectual Property Office, the European Patent Office, or specified EEA countries are applicable for Patent Box. The regime notably excludes patents granted by patent offices in France, Spain, Italy, the US, and Japan. In many international jurisdictions, there is an opportunity to secure patent protection in other jurisdictions within certain time periods – 1 – 2 years typically. Once you have ascertained that Patent Box makes economical sense, it may be possible to apply for a UK patent based on a USA one and with the same filing date (the date at which the patent has been applied for (not granted). You would need to talk to a patent agent to understand the options in detail and the possible costs involved in going down this route.

What happens if I am not making a profit?

If your company does not make a profit and hence does not pay any corporation tax in a given financial year, the benefit in tax saved via Patent Box is stored up to be put against future profits. You still need to generate and present the data to HMRC even if there is no immediate benefit.

How TBAT can help

We support start-ups and early-stage businesses looking for investment, to grow and develop by applying into the Patent Box Scheme. Contact us for further information.