The scheme involves a complex calculation to identify and ring-fence relevant IP-derived income. This includes:
From 2021, the Nexus fraction is applied — linking Patent Box benefits to the proportion of R&D activity conducted by the claimant.
Eligible income includes:
FI Group can help determine if your income streams qualify even if the patent covers only a small part of a product.
Our Patent Box experts work closely with your finance, tax, and R&D teams to:
We also work with IP attorneys and tax advisers to support:
Using both incentives strategically can reduce your effective tax rate and free up capital for growth. FI Group ensures:
This approach strengthens your innovation funding ecosystem and improves cash flow.
The scheme is ideal for:
Even SMEs with a single patent may benefit significantly.
We ensure your Patent Box claim is accurate, defendable, and maximised — while integrating it with other funding options.
The UK’s Patent Box scheme offers a significant tax incentive for innovative companies. By applying a reduced corporation tax rate to profits earned from patented inventions, the Patent Box Tax Relief rewards businesses that develop and commercialise IP in the UK.
At FI Group, we help companies identify qualifying IP, calculate relevant profits, and prepare robust claims to maximise the benefits of this valuable regime. Combined with R&D Tax Relief, Patent Box can significantly enhance your innovation ROI.
The Patent Box is a government initiative that allows companies to apply a reduced 10% corporation tax rate to profits earned from qualifying intellectual property (IP). This applies to income from:
To qualify, companies must: