Patent Box relief rewards your intellectual property investment by reducing your Corporation Tax rate on qualifying IP income to just 10%.
See the potential savings when profits linked to your patented innovation are taxed at just 10% instead of 25%.
| Total Trade Profits | Patent Income (50%) | Standard Tax (25%) | With Patent Box | Tax Saving |
|---|---|---|---|---|
| £250,000 | £125,000 | £62,500 | £12,500 | £50,000 |
| £500,000 | £125,000 | £125,000 | £25,000 | £100,000 |
| £1,000,000 | £500,000 | £250,000 | £50,000 | £200,000 |
| £1,500,000 | £750,000 | £375,000 | £75,000 | £300,000 |
Patent Box Opportunity
Only 1,500 companies currently use Patent Box, but thousands more are eligible. If you're paying 25% Corporation Tax and have a patent, you could be paying 10%.
Transform your intellectual property investment into tangible tax benefits.
Pay just 10% Corporation Tax on qualifying patent income instead of the standard 25%
Direct financial reward for your investment in research, development and patented IP
Enhanced profitability from patent income gives you a competitive edge in your market
Tax savings can be reinvested into further R&D and business growth initiatives
Various income streams from your patented intellectual property can qualify for the 10% tax rate.
Sales of products that incorporate your patented technology
Royalties and fees from licensing your patents to third parties
Capital gains from selling patents or patent rights
Compensation received for patent infringement cases
Income from services using patented processes or methods
Expert guidance through every step of your Patent Box journey.
Comprehensive Patent Box guidance from eligibility through to ongoing optimisation
Initial consultation to confirm eligibility (patent ownership, R&D activity, commercialisation stage). Review of existing patents or pending applications.
Identify revenue streams linked to patented products/processes. Work with client's finance team to separate qualifying vs. non-qualifying income.
Apply HMRC's streaming rules. Prepare detailed computations showing Corporation Tax savings from 25% to 10%.
Liaise with accountants to incorporate Patent Box claim into the CT600. Provide supporting documentation for HMRC.
Annual review of new patents, new product lines, and future eligibility. Strategic advice to maximise both R&D Relief + Patent Box.
Strategic integration of R&D Relief and Patent Box delivers compound tax benefits for innovative businesses.
"If you're already claiming R&D, let's assess if you can also reduce tax on your profitable outcomes."
"Transform your intellectual property into ongoing tax savings while maintaining competitive advantage."
"Strategic alignment of R&D Relief and Patent Box optimises both development costs and profitable outcomes."
What clients say about working with Lexmore.
“Knowledgeable, professional, and incredibly responsive”
I've had an excellent experience working with Fabien. He has been taking care of my R&D project, and throughout the entire process he has been knowledgeable, professional, and incredibly responsive.
Ensure your business meets the criteria for Patent Box tax relief.
Manufacturing
Engineering
Pharma/Biotech
Software/AI
Medical Devices
Automotive
Aerospace
Technology
We partner with experienced patent attorneys who provide comprehensive patent services including:
Our partners have comprehensive experience across all areas of technology with a strong commercial outlook to help you make strategic IP decisions.
Insights and guides about Patent Box Tax Relief