HMRC’s latest statistics reveal that 1,025 companies claimed £942.5m in Patent Box relief in 2016/17. Three quarters of those claims were made by SMEs however in terms of claims' value, large companies claimed 96% of the relief.

The Patent Box regime is a Corporation Tax relief which gives a reduced rate of tax (10%) on income deriving from the commercial exploitation of patents. Like most modern tax reliefs, it is a notoriously complex relief to claim.

Highlights of HMRC statistics

  • Over 50% of claims in number and value were made by companies in the Manufacturing sector. 215 ‘Wholesale & Retail Trade, Repairs’ was the second most common sector.
  • The South East had the highest number of companies claiming relief under the Patent Box in 2015-16 (200) followed by the East of England (140). T
  • The smallest number of claimant companies was in the North East (30).
  • Companies in London claimed the most relief under the Patent Box (£383.5 million, or 50.8% of the total).

Useful guides

Patent Box relief

External links

HMRC Patent Box Statistics