UK tax authorities have published a new guide on the patent box regime

The Patent Box will potentially benefit a wide range of companies which receive patent royalties, sell patented products, or use patented processes as part of their business

The patent box enables companies to apply a lower rate of corporation tax (10%) to profits earned after 1 April 2013 from patented inventions and some other innovations.

The regime will also apply to other qualifying intellectual property rights such as regulatory data protection (also called “data exclusivity”), supplementary protection certificates (SPCs) and plant variety rights.

Other non-qualifying profits in these companies will continue to be taxed at the main rate.

The guide explains who can elect for the Patent Box, which patents are eligible and how and when to claim.