HMRC's patent box regime: The basics

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HMRC's patent box regime will affect businesses liable to corporation tax, who make a profit from exploiting patented inventions.

The regime comes into effect from April 2013 and the benefits will be phased in over five years.

It allows companies to be taxed at a reduced rate of 10% on profits from patents and other innovations, called relevant IP profits (RIPI).

Tax experts Gabelle provided an analysis of the new HMRC guidance for businesses interested in the regime. 

Qualifying businesses include companies who own or exclusively licence in patents granted by authorities such as the UK Intellectual Property Office, as well as other bodies available to view on the HMRC website.

Register with AccountingWEB for free to read the rest of the article, which includes:

  • First step: RIPI 
  • Calculating RIPI 
  • Calculating RP
  • How and when to claim

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About Rachael Power

Your friendly, neighbourhood community editor. 

Twitter: @rachpower10 


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11th Dec 2012 12:37


I forsee a rash of patents "commercially irrelevant"  patents being lodged, leaving HMRC to have to burn taxpayer's money dragging companies into court. Remind me, when is a cake not a cake again?


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