Patent box ― qualifying intellectual property

By Tolley
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The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Patent box ― qualifying intellectual property
  • Requirement of the qualifying company conditions
  • Rights to which the patent box applies
  • Exclusive licences
  • Patents pending

Requirement of the qualifying company conditions

One of the requirements of the qualifying company conditions set out in CTA 2010, s 357B is that the company must hold a qualifying intellectual property (IP) right or must hold an exclusive licence in respect of such a right. Please refer to the Patent box ― qualifying companies guidance note for more detail on the qualifying company conditions and the additional criteria that must be satisfied.

The rights which must be owned by a company in order to benefit from the patent box and the meaning of an exclusive licence to such rights are set out below.

Rights to which the patent box applies

A right is a qualifying IP right if it is listed in CTA 2010, s 357BB. The list is as follows:

  • patents granted under the UK Patents Act 1977 (subscription sensitive) by the UK Intellectual Property Office (UK IPO)
  • patents granted under the European Patent Convention by the European Patent Office (EPO)
  • patents issued by other specified EEA national authorities (see the list below)
  • supplementary protection certificates relating to medicinal or plant protection products granted by the UK IPO or EPO
  • UK plant breeders and European plant variety rights
  • certain UK and European data or marketing regulatory exclusivity rights for medicinal, veterinary or plant products
  • inventions that have not been granted a patent under the UK Patents Act 1977 (subscription sensitive) solely on grounds of national security or public safety

Patents which have been granted under the European Patent Convention are a specific form of patent. This category does not include patents granted by individual European countries generally.

National patent offices of certain EEA countries are considered by the UK

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