R&D Tax IncentivesR&D Tax Incentives

R&D Tax Relief Scheme — what is it?

  • A government tax incentive available to UK companies.
  • SMEs can claim an enhanced tax deduction of 86% on qualifying expenditure (130% prior to 1 April 2023).
  • For large companies the benefit comes through as a taxable credit at the rate of 20% (13% prior to 1 April 2023).
  • Companies with no tax liabilities can claim the relief as a cash refund from HMRC, subject to a cap.
  • For accounting periods beginning on or after 1 April 2024, companies will claim R&D Tax Reliefs under the new ‘Merged R&D Tax Credit Scheme‘.  R&D Intensive SMEs can still claim the enhanced deduction of 86% on qualifying R&D expenditure under the new Enhanced R&D Intensive Support (ERIS) Scheme.

Patent Box Tax IncentivesPatent Box Tax Incentives

The patent box is part of the government’s growth agenda to reward and incentivise companies to:

  • Retain and commercialise patents; and,
  • Develop new innovative patented products.

The scheme allows UK Tax paying companies to benefit from a reduced rate of corporation tax of 10% for profits attributed to patents.

Are you a qualifying company?

A qualifying company is one which satisfies the following conditions:

  • Has a patent granted (or applied) in the UK (“IPO”) or EPO and specific EEA countries;
  • Has an exclusive license in respect of a qualifying right;
  • Is undertaking qualifying development i.e the company is actively involved in the development on the patented invention or product which incorporates the patented invention;
  • For group companies the claimant must demonstrate that it is actively involved in the patent invention, although the IP may be held by a group company.

How we can help

Do you have existing patents? We can assist you as follows:

  • Help you understand the full extent of the patent box scheme;
  • Scope out the potential benefit for a patent box claim;
  • Assist you in preparing the full claim and supporting documentation required to make a successful claim.

Do you have patentable products/processes?

  • We can assist you by identifying areas of your development that may be patentable;
  • Assist you in your patent application process;
  • Prepare your patent box claims as explained above.

As the R&D scheme links with the patent box scheme, our team will build on the knowledge of the R&D claims for the patent box scheme to provide synergies.

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