In 2009, in an effort to further reward innovative companies, the UK Government announced an initiative called “the Patent Box”. This legislation gives a reduced effective rate of corporation tax to 10% for any companies making an income from patents. The relief has been phased in from 1 April 2013 and the full
benefit of the Patent Box has been available from 1 April 2017.
In 2016/17, a total of 1,170 companies claimed relief under the Patent Box with a total value of £1.035 million. The number of claims for 2017/18 so far is 1,120 with a value of £993 million, however there are still hundreds of eligible companies who have not claimed!