Maximise the value of innovation

Patent Box tax relief

Patent Box tax relief

If your business is developing innovative products or processes protected by patents, the UK Patent Box regime could provide a significant reduction in your Corporation Tax bill. By applying an effective tax rate of just 10% to qualifying profits, Patent Box tax relief is designed to reward UK companies for commercialising patented inventions.

At Wilson Partners, we specialise in helping businesses navigate this complex legislation and maximise the available relief. We ensure claims are compliant, efficient, and aligned with your wider R&D strategy.

What is the Patent Box?

The Patent Box is a government initiative that allows companies to apply a lower rate of Corporation Tax to profits earned from patented inventions. Introduced to incentivise innovation and retain intellectual property in the UK, the relief can result in a 15% tax saving compared to the standard 25% Corporation Tax rate.

This benefit applies not only to direct sales of patented products but also to licence fees, royalties, and other revenue linked to patented technology.

Who can claim for Patent Box tax relief?

To qualify for the Patent Box, your company must:

  • Be liable to Corporation Tax in the UK.
  • Own or exclusively license a UK or European patent (or certain other intellectual property rights).
  • Have significantly contributed to the development or commercialisation of the patented invention.
  • Earn relevant IP income from the sale, licensing, or use of the patented product or process.

It’s worth noting that even if your patent protects only a small component of a product or system, the entire revenue may qualify for relief.

What income qualifies in a Patent Box claim?

A wide range of income streams can be included in a Patent Box claim, including:

  • Sales of patented products or products that incorporate a patented component
  • Licence fees and royalty income
  • Income from the sale of patent rights
  • Damages awarded in patent infringement cases
  • Notional royalties for internal use of patented technology

We help you identify and substantiate all eligible income to ensure your claim is as comprehensive as possible.

Patent Box and R&D Tax Relief - A joined-up approach

Patent Box claims often go hand-in-hand with R&D tax relief. To benefit from the Patent Box, your company must have undertaken qualifying R&D in relation to the patented invention, meaning the two schemes are closely intertwined.

Our specialist innovations team can guide you through both processes, ensuring you don’t miss opportunities and that your claims are fully aligned and optimised.

Why Choose Wilson Partners?

At Wilson Partners, we combine technical tax expertise with commercial insight to help businesses turn innovation into tax savings. We take the time to understand your business, your IP, and your strategic goals, ensuring the Patent Box works for you. You can expect:

  • Expert guidance on eligibility and claim preparation
  • Integration with R&D tax relief strategy
  • Robust documentation to support compliance
  • Strategic advice on IP planning and future claims

Whether you’re already claiming R&D tax relief or just beginning to explore Patent Box, we can help you unlock the value of your innovation.

Innovations and R&D tax relief
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Page reviewed May 2026.