Patent Box Tax Relief
We help innovative Cardiff businesses claim Patent Box tax relief, reducing your Corporation Tax to just 10% on profits from your patented inventions. With nearly ten years of experience serving small businesses across South Wales, we'll guide you through the eligibility checks, calculations and claims process so you keep more of what you've earned.
What we cover under Patent Box relief
Patent Box sits alongside a range of tax incentives for innovative businesses. We'll help you understand which reliefs you qualify for and how to maximise the benefit.
Eligibility assessment
We'll check whether your patents, development activity and ownership structure meet HMRC's qualifying conditions.
Qualifying profit calculations
Working out the R&D fraction and separating routine profits from IP-derived income, so your claim is accurate and defensible.
Election and filing
Making the formal election within the two-year window and including the relief in your Corporation Tax return.
Combining with R&D tax credits
Claiming both Patent Box and R&D relief where eligible, maximising the tax advantage on your innovation.
How Patent Box relief works for Cardiff innovators
Patent Box is a UK tax incentive that rewards businesses for developing and commercialising patented inventions. If your company owns or exclusively licenses a qualifying patent and meets the development conditions, you can reduce Corporation Tax to 10% on the profits linked to that IP. With the main rate now at 25%, that's a significant saving for businesses doing genuine R&D.
The scheme applies to patents granted by the UK IPO, European Patent Office or select EEA offices, covering income from worldwide sales, licensing and related activities. You must meet substance requirements: active ownership of the IP and a qualifying development condition, which means your company carried out a significant amount of the work that led to the patent.
You could be paying 10% Corporation Tax instead of 25% on profits from your patented innovations.
More information
Claiming the relief involves calculating your qualifying IP profits, applying an R&D fraction if you outsourced development or acquired the patent from a connected party, and making a formal election within two years of the end of the accounting period. The calculations can be complex, especially when separating routine returns and marketing contributions from genuine IP profit, so most businesses benefit from professional support.
We work with innovative companies across Cardiff and South Wales, from tech startups in Cardiff Bay to manufacturers in Newport and Bridgend, helping them navigate the eligibility checks and file accurate claims. If you've developed a patented product or process, or you're licensing IP that you own, it's worth exploring whether Patent Box could reduce your tax bill.
Who qualifies?
- Companies liable to UK Corporation Tax
- Own or exclusively license a qualifying patent
- Meet the active ownership and development conditions
- Generate income from the patented invention (sales, licensing, damages)
Patent Box can be claimed alongside R&D tax credits, and relief may apply to income from pending applications once the patent is granted, as long as you meet the conditions. The key is acting within the two-year election window and getting the calculations right from the start.
If you think your business might qualify, or you're unsure whether your patents meet the criteria, book a free consultation and we'll talk you through the process. We'll review your situation, explain what's involved, and help you decide whether Patent Box makes sense for your company.
Worth considering
HMRC Enquiry & Investigation Support
Support with HMRC enquiries and investigations, from the first letter to the final outcome. We organise records, manage deadlines, and deal with HMRC on your behalf.
HMRC Enquiry & Investigation Support→Business Tax Planning
Plan ahead for Corporation Tax or Self Assessment, forecast what you will owe, and use allowances, expenses and profit extraction sensibly.
Business Tax Planning→R&D Tax Credits
Claim R&D Tax Credits without the stress. We confirm eligibility, calculate qualifying costs, write the supporting report, and submit the claim with your Corporation Tax return.
R&D Tax Credits→Corporation Tax Planning
Get a clear estimate of your company’s corporation tax, plan director pay and spending, and avoid nasty surprises at year end with practical, plain-English advice.
Corporation Tax Planning→Corporation Tax Returns
CT600 and iXBRL preparation and filing for limited companies, with clear tax calculations, allowance checks, and deadline tracking so you stay compliant and avoid surprises.
Corporation Tax Returns→Before you make a claim
Here are the questions we hear most often from Cardiff businesses exploring Patent Box relief.
Does my patent have to be granted before I can claim?
What's the R&D fraction and when does it apply?
Can I claim Patent Box and R&D tax credits at the same time?
How much could I save with Patent Box?
How long do I have to make the election?
Do I need to have done all the R&D myself?
What types of income qualify for Patent Box?
How do you calculate the qualifying profit?
Let's talk about Patent Box
Book a free consultation and we'll assess whether your business qualifies and walk you through the claims process.
Book a free consultation