The UK Patent Box: a quick guide for innovative companies

1 September 2026

The Patent Box is a UK tax relief that allows companies to apply a lower 10% rate of Corporation Tax to relevant profits earned from patented inventions and certain other qualifying rights. For companies whose products rely on patented technology, it can be valuable – but it has conditions.

Who may qualify

In broad terms, a company may be able to elect into the Patent Box if it:

• is liable to UK Corporation Tax
• owns, or exclusively licenses, qualifying patents – for example those granted by the UK Intellectual Property Office or the European Patent Office, and certain other specified offices
• has carried out qualifying development on the patented invention, or is part of a group that has

Which profits count

Relief applies to the share of profits that relates to the patented invention – for example income from selling products that incorporate it, licensing the patent, or certain damages for infringement. The calculation involves separating out routine profit and a marketing return, and the share of relevant R&D carried out by the company affects the amount of relief.

Making an election

Companies must elect into the regime, and there are time limits for doing so after the end of the relevant accounting period. Profits from the period before a patent is granted may also be claimable in some circumstances once it is granted.

Is it worth it?

The Patent Box tends to suit profitable companies whose income clearly depends on patented technology. Early-stage companies that are not yet profitable may still want to plan for it, because filing and ownership decisions taken now affect whether relief is available later.

Next steps

Tax rules change and the calculations are detailed, so speak to your accountant or tax adviser before relying on the Patent Box. Official guidance is published on GOV.UK. From an IP perspective, we can help make sure your patent strategy and ownership arrangements support a future claim.