SMEs urged to use Patent Box

SMEs urged to use Patent Box

David Gauke, the Treasury minister, has said he wants to ensure British SMEs benefit from the “patent box” scheme, which allows businesses to cut the amount of corporation tax they pay on profits generated by UK-owned intellectual property by 10%.

Mr Gauke said: “We need to get the message out. The large companies are well aware of it, but it’s important that we remember this isn’t just about big pharmaceutical companies. There are lots of businesses that can benefit – we’ve got a very good message now in terms of business tax and it’s important that companies are aware.”

He added: “If you put the patent box alongside R&D tax credits we now have a very attractive regime for innovative businesses. That’s going to be crucial for the knowledge economy that we need to stimulate.”

John Mitchell, chairman of the SME Innovation Alliance, originally pitched the idea for the scheme to the Labour government in 2009. “This is a step in the right direction. But I do fear big companies will benefit more than small firms. My original idea was to focus the scheme on encouraging firms to license their technology to disseminate innovation. I don’t think what we’ve got in practice is going to achieve that.”

Visit our Patent Box homepage for more information on how we can help you take advantage of this tax relief.

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This information has been produced by Rouse Partners LLP for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of this information is accepted by Rouse Partners LLP. In all cases appropriate advice should be sought before making a decision.

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