Corporation Tax

Patent box ― qualifying intellectual property

Produced by Tolley
  • 19 Oct 2021 23:02

The following Corporation Tax guidance note Produced 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
  • Other qualifying rights
  • Exclusive licences
  • Patents pending

Patent box ― qualifying intellectual property

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 and s 357BBA. The list is as follows:

  1. patents granted under the UK Patents Act 1977 by the UK Intellectual Property Office (UK IPO)

  2. patents granted under the European Patent Convention by the European Patent Office (EPO)

  3. patents issued by other specified EEA national authorities (see the list below)

  4. supplementary protection certificates relating to medicinal or plant protection products granted by the UK IPO or EPO

  5. UK plant breeders and European plant variety rights

  6. certain UK and European data or marketing regulatory exclusivity rights for medicinal, veterinary or plant products

  7. inventions that have not been granted a patent under the UK Patents Act 1977 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 government to have comparable search and examination processes and patentability criteria to the UK IPO and the EPO. Consequently, full patents granted by the patent offices of the following countries will be included within the patent box:

  1. Austria

  2. Bulgaria

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