Innovation Incentive Services – Patent Box, R&D Tax credits

Some countries seek to promote innovation through patent box or similar schemes, where tax relief is available to be offset against corporation tax. For example, UK Corporation tax is set to increase by a whopping from 19% to 25% in 2023. By owning a UK patent directly related to your profit generation it is possible to reduce corporation tax down to 10% using the patent box scheme.

The UK Patent Box is a corporate tax relief open to companies paying corporation tax that own or exclusively license patent(s) and that have received income from products or services utilising those patents. The forward-looking scheme in Ireland even includes trade secrets as qualifying intellectual property.

There are 45 x more R&D tax credit claims each year in the UK than patent box claims (60,000 vs 1,400)! This discrepancy is in part due to a lack of understanding of the patent box scheme, the patenting process and the value creation available from patenting.

R&D tax credit schemes provide financial stimulus to support innovation across multiple sectors and industries. Claims usually either will result in a cash benefit either in the form of a reduced corporation tax liability or a repayable cash credit, if loss-making.

To qualify businesses must show technological or scientific advances and why the knowledge was not readily deductible by a competent professional.

Innovation Incentive Services – Patent Box, R&D Tax credits

Where businesses trade internationally with IP housed in specific (tax efficient) location(s) there are new(ish) tax laws that need to be recognised.

OECD BEPS (base erosion profit shifting) rules were introduced to try and reduce the shifting of profits usually by major corporations. In these cases, the location of the intellectual property (in lower tax locations) is used to cross charge the business e.g. for the use of brands, hence to reduce profits.

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Neil Court Johnson

John has played an invaluable role in assisting us to develop and implement a trade secrets programme, to identify and roll out IP best practice in process and systems - and has provided us with critical support regarding IP in real life business negotiations. I would strongly recommend John as a business partner.

Christine Jennings

I have worked with John for many years within the IP industry. He has an impressive ability to identify opportunities and turn these into commercial business deliverables.

Katie Gordon

I was very confused about what unregistered trademark and registered trademarks were, IP protection and simply how to protect my business and IP assets.

Brian Mwenda

“It is always a delight working with John. He has been an invaluable resource to our business as we build our intellectual property asset base. We have successfully received registration for trademarks and patents while following an IP strategy developed by John.

Harry Dunlop

“I was fortunate enough to work with John relatively early-on in my career and look back on that time extremely fondly. John is an exceptional and instinctive mentor and coach who always brings a wealth of business and IP experience to any situation with understanding and compassion.

Simon Webster

I thoroughly enjoyed working with John. We built two new products together, worked on challenging market and customer opportunities and had a great deal of fun along the way.

Colin Hunter

I have known John for many years and I value his logic, his structured thinking and his ability to make complex simple especially, not not only, in IP. Would recommend him highly as a strategic and thinking partner.

Christian Bunke

Exalt IP coached us on how to achieve amazing value for our IP assets when we sold the business and the IP separately

CEO MyDrive

“Exalt IP helped us develop an IP Strategy Business Plan, identify and protect the value in our IP and to enhance the value of our business” CEO MyDrive