UK Patent Box Grants GBP 342 Million
October 8, 2016 Taxation in UK
LONDON – Companies throughout the UK are making use of the Patent Box tax breaks, although the system is more popular among large companies rather than small ones.
New information released by the UK HM Revenue and Customs has shown that business in the country have claimed approximately GBP 342 million in tax breaks from the Patent Box system.
The Patent Box system grants businesses a break on the incomes derived from technology patented in the UK.
In the 2013/14 year a total of 700 UK companies took advantage of the Patent Box system, claiming a total of GBP 342 million in tax breaks, at an average amount of GBP 488 thousand per claim.
The Patent Box system was predominantly by large companies, with 225 companies claiming tax breaks, at an average of GBP 1.45 million each.
Conversely, only 175 small- and medium-sized businesses claimed tax breaks under the Patent Box system, with an average value of GBP 67 thousand each per claim.
Manufacturing companies were the most likely to take advantage of the Patent Box system, with more than 60 percent of claimants coming from the industry, followed by IT, financial services, and real estate.
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