All your clients can potentially benefit from the tax saving of Patent Box but only 700 companies claimed according to the latest government statistics.
Don’t wait until you have a granted patent – there are benefits of electing into Patent Box during the patent pending stage.
Whilst it is not your primary function to advise your clients on Patent Box, many patent attorneys are realising that if their clients benefit from Patent Box taxation saving, this can then directly lead to a self-funding patent portfolio.
Additionally, for some new inventive concepts where the client is unsure as to whether to incur the expense of a first UK filing, the future taxation saving could be significant in encouraging the client to proceed with the application.
- In 2013-14, 700 companies claimed relief under the Patent Box with a total value of £342.9 million.
- Just under one third of the companies (225 or 32.1% of total) were large and together they claimed £327.2 million of relief under the Patent Box.
- Most companies were in ‘Manufacturing’ (445). The second highest number were in ‘Wholesale & Retail and Transport’ (115).
- Companies in ‘Manufacturing’ claimed the highest value of relief under the Patent Box (£217m) followed by companies in ‘IT, Financial Services and Real Estate’ (£59m).
As a Patent Attorney you are unlikely to be aware of the full tax profile of your client. We are qualified to advise on the possible long-term taxation benefits that may come from a successful granting of a patent application.
As specialist advisors in the field we can ensure your client is well advised from a given IP portfolio strategy as to the potential taxation savings:
- New UK filings
- Strategies for acceleration to grant of pending applications or in / out licensing arrangements.
Additionally, there are frequently occasions where during an R&D claim we identify that the client has made a novel and inventive development which may be potentially patentable both for Patent Box taxation benefits and as part of their IP strategy. In such cases we seek to introduce our client to a suitable patent attorney. Whilst we already have relationships with a handful of respected patent attorneys, there is always benefit in extending our network so that we have as wide a range of patent attorneys as possible, to enable us to select the optimum fit for each of our clients based on technical field expertise and client geography.