UK Patent Box tax relief
Patent Box.
More value
from your IP.
Your patented inventions could be doing more for your business. Patent Box can reduce Corporation Tax on qualifying IP profits to 10%. InnoFund brings tax, financial and technical expertise together to identify the opportunity, prepare the calculation and support your claim with HMRC.
- 30-minute first conversation
- Tax, finance and technical expertise
- HMRC enquiry defence included
The opportunity. The experience.
A valuable incentive.
An experienced team.
The 10% rate applies to calculated qualifying IP profits, not all company profits. See HMRC’s Patent Box guidance. The £300m+ figure is InnoFund’s published historic total across services, not a Patent Box-only result or a promise of outcome. Trustpilot covers the wider business and may change.
For business owners
You built the innovation.
Make the return count.
You have invested in developing a product, protecting an invention and bringing it to market. Patent Box is an opportunity to retain more of the profit that qualifying innovation generates—and put it towards what comes next.
We start with the commercial case: the rights you hold, how they earn income and whether the potential benefit justifies the work. Your team explains the business; our specialists lead the tax analysis and work with your accountant on the numbers.
- Start with 30 minutes
- Tell us about your patents, products and accounting period. We will identify the questions that matter.
- Build on existing records
- Patent documents, product sales, development records and management accounts give us a starting point.
- Keep your team focused
- We agree the information needed, speak to the right people and coordinate with your existing advisers.
- Understand the decision
- You see the potential benefit, the assumptions and the work involved before proceeding with the claim.
Why InnoFund
A patent is the start.
The value is in the detail.
Patent Box connects intellectual property, development activity and trading profits. Our specialists work across those disciplines to build a calculation that reflects how your business actually earns its income.
IP and income
See the opportunity in the product.
We connect qualifying rights to products, components, royalties and other income, looking beyond the obvious revenue line.
R&D traceability
Connect development to the right.
We trace the research behind the IP and examine in-house, outsourced and acquired expenditure for the R&D—or nexus—fraction.
Financial precision
Find the qualifying profit.
Income streams, expenses and statutory deductions are considered together, with a clear reconciliation to the tax computation.
Accountability
Support beyond submission.
We organise the basis of the claim from the outset and defend Patent Box claims we prepare if HMRC opens an enquiry.
One connected view of your innovation. We coordinate Patent Box with R&D tax relief and IP planning, working alongside your accountant and patent attorney where appropriate.
Is Patent Box right for you?
The starting points
for a worthwhile review.
You do not need a large patent portfolio to start a conversation. We review the company, the qualifying rights and the income they generate, then test the development and ownership conditions.
A company within UK Corporation Tax
The relief applies to qualifying companies with relevant trading profits. We establish which company would make the election.
A qualifying patent or right
We check granted patents, the relevant patent office, ownership and any qualifying exclusive licence.
A contribution to development
The development condition connects the relief with work on the invention, or a product or process incorporating it.
Income linked to the innovation
Product sales, licensing and other qualifying income need to be identified before calculating the associated profits.
Records that connect the story
Development expenditure, IP records and financial information support the calculation. We identify gaps early.
A clear ownership structure
Where a group is involved, we review active ownership, development arrangements and which entity exploits the right.
Where the value can sit
Find the profit
behind the patent.
Patent Box is not limited to a royalty line in your accounts. Qualifying income can be embedded in the products you sell or arise from licensing and other exploitation of your rights.
We identify the relevant income, allocate related costs and apply the required deductions and R&D fraction. That produces the qualifying profit on which the Patent Box benefit is calculated.
Patented products
Sales of patented items, including products incorporating a qualifying invention, where the statutory conditions are met.
Components and spare parts
Patented components within larger products and qualifying bespoke spare parts deserve careful review.
Licensing and royalties
Trading income from licensing qualifying rights can fall within the regime. We review the rights and agreements involved.
Patented processes and tools
A process or service may call for a notional royalty calculation, rather than treating all the resulting sales as qualifying income.
Disposal of qualifying rights
Income from selling qualifying rights needs its own analysis of the right, the receipt and the tax treatment.
Damages and compensation
Certain infringement damages and compensation can be relevant, subject to the income and timing conditions.
How we work
From patent portfolio
to a supported claim.
You have one coordinated engagement, a clear information request and visibility over the technical and financial judgements behind the claim.
- 01
Review the opportunity
Assess the patent portfolio, qualifying development, ownership, income and the accounting periods in scope.
- 02
Map rights to income
Connect products, components, licences and other receipts to the qualifying rights and the appropriate income streams.
- 03
Trace the R&D
Calculate the nexus fraction using the development and acquisition expenditure behind each relevant stream.
- 04
Calculate and review
Attribute profits, consider routine and marketing returns, reconcile the computation and explain the resulting position.
- 05
Elect, submit and support
Prepare the election, calculation and supporting information, coordinate submission with your accountant and support the claim with HMRC.
Support shaped around your business
Your first claim.
Or a better-informed next one.
Whether Patent Box is new to you or already part of your tax position, we can focus our expertise where it is most useful.
Starting out
Your first Patent Box claim
Establish eligibility, assess the commercial benefit and build the calculation and evidence from the ground up.
An existing position
Review a previous calculation
Ask us to examine income coverage, expense allocation, nexus workings and the supporting documentation.
Working together
Coordinate with your accountant
Keep your existing relationship. We provide specialist Patent Box analysis and agree how it feeds into the company’s tax return.
When HMRC asks questions
HMRC enquiry defence included
No extra charge to defend a claim we prepare
If HMRC enquires into a Patent Box claim we prepare, we defend it at no extra charge. We organise the technical and financial evidence and handle correspondence under the agreed agent authority.
IP consulting & InnoGuard®
No patent yet?
Start with the IP.
If you are developing a product or process but have not explored protection, our IP Consulting and InnoGuard service is a practical next conversation. We help connect your innovation, commercial priorities and IP strategy, coordinating with patent attorneys where appropriate.
Patentability and legal protection need their own assessment. We consider those alongside R&D tax relief and the potential future Patent Box position, so development and commercialisation are planned together.
- Understand what gives your innovation value
- Consider appropriate intellectual property protection
- Connect IP decisions with the longer-term tax position
The people behind your Patent Box claim
Tax and technical expertise. One connected team.
Your claim needs people who can connect the invention with the accounts. Our work draws on senior tax and compliance experience, IP consulting, financial analysis and technical specialists, with clear responsibility throughout.
Adam Jerreat
Senior Partner
R&D Tax Relief and Innovation Funding
Richard Skelton
Head of Land Remediation Relief and Partnerships Director
Capital Allowances, IP Consulting, Land Remediation Tax Relief, and R&D Tax Relief
Fatima Azzedine
Lead R&D Financial Consultant
R&D Tax and Financial Claims
Client experience
An opportunity worth a second look.
A Patent Box client on working with InnoFund. Individual results and timescales depend on the circumstances of each engagement.
“We had an existing R&D specialist but we had never explored Patent Box. InnoFund identified an opportunity for Patent Box tax relief and pulled the claim around in under a month. The team are always ready to help and go the extra mile, even working weekends, to meet your expectations.”
Patent Box, explained
Questions before you start.
A first conversation can establish what matters for your patents, profits and accounting period.
Ask about Patent BoxWhich companies can benefit from Patent Box?
Patent Box is for qualifying companies liable to UK Corporation Tax that hold qualifying IP rights or an eligible exclusive licence, meet the development conditions and generate relevant profits. Group companies also need to consider active ownership. We review the company, the right and the activity together.
Does the 10% rate apply to all our profits?
No. It applies to the qualifying IP profits produced by the Patent Box calculation. Relevant income, related expenses, routine and marketing returns, and the R&D fraction all need to be considered. Other profits remain subject to the company’s applicable Corporation Tax treatment.
Do we need a granted patent before speaking to you?
No. A pending patent is a good reason to plan early. Patent-based relief depends on a qualifying grant, but the rules can allow certain pre-grant profits to be brought into the calculation in the grant period, provided the relevant conditions and elections are met. It is not automatic backdating: ask us to check the dates before waiting for the grant.
Can we benefit if we license a patent in or out?
Potentially. Royalties and licence fees from qualifying rights may be relevant income. A company licensing rights in must satisfy the qualifying exclusive-licence conditions. We review the actual agreement and commercial arrangements rather than relying on its label.
Can we use Patent Box and R&D tax relief together?
Yes, where the separate conditions are met. R&D tax relief concerns qualifying development expenditure; Patent Box concerns qualifying IP profits. We coordinate the analysis so development records, ownership, income and the tax treatment tell a consistent story. An R&D claim does not automatically establish Patent Box eligibility.
What is the R&D or nexus fraction?
It links the Patent Box benefit to the research and development behind the IP. The calculation considers different categories of development and acquisition expenditure. Acquired IP and connected-party R&D can restrict the benefit, so tracking the underlying expenditure matters.
When do we need to elect into Patent Box?
The election is generally due within two years after the end of the accounting period in which the relevant profits and income arise. Pending rights and pre-grant profits require particular care. We check the relevant periods and deadlines at the start of the engagement.
What happens if HMRC enquires into the claim?
We defend Patent Box claims we prepare at no extra charge if HMRC opens an enquiry. We bring the technical and financial evidence together and manage the correspondence under the agreed agent authority. Support for a claim prepared elsewhere can be discussed separately.
Your next step
What could your
IP be worth?
Start with a 30-minute conversation about your patents, products and profits. We will help you understand the potential, the information needed and the most useful next step—whether you are making your first claim or reviewing an existing position.
- 30 minutesA focused first conversation
- Expert guidanceTechnical, tax and commercial context
- Commitment freeA clear next step, without obligation