What types of intellectual property qualify for Patent Box tax relief, and to what extent can income deriving from this qualify?
As well as patents granted in the United Kingdom, European patents and national level patents granted in 13 other European countries are also eligible intellectual property from which Patent Box relief can be claimed. Profits made from worldwide income derived from any such patents qualify for relief.
Other types of intellectual property that are similar to patents (and thus also attract relief) include human and veterinary medicine products (with marketing authorisations and marketing or data protection), plant breeders’ and plant variety rights and supplementary protection certificates. As well as this companies owning intellectual property which cannot be patented by virtue of national security and/or public safety can still benefit from Patent Box relief.
Companies who do not own intellectual property as described above can claim relief if they own an exclusive licence to exploit the intellectual property, subject to meeting certain criteria. The scope of the income from which Patent Box profit can be derived is limited to the extent that the licencing agreement permits.
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