Meaning of qualifying company for the patent box

Only those companies which meet the qualifying company conditions in CTA 2010, s 357B are able to benefit from the reduced rate of corporation tax which can be applied to patent box profits. See the Patent box tax regime ― overview guidance note for background information on the regime. Standalone companies must satisfy conditions A or B below, and companies which are members of a group must also satisfy condition C, as follows:

1. •

   Condition A is that at any time during the accounting period, the company holds qualifying intellectual property (IP) rights, or holds an exclusive licence (as defined in CTA 2010, s 357BA) in respect of any such rights

2. •

   Condition B is that:

3. 1. ◦

      the company has held a qualifying IP right or exclusive licence in respect of a right

   2. ◦

      the company has received income in respect of an event which occurred in relation to the right or licence when:

   3. 1. ▪

         the company was a qualifying company, and

      2. ▪

         the company