Yes! An election you can’t lose!
With all the election talk going around at the moment it can be difficult to know who to trust… and what is going to happen next.
Boris Johnson has recently stated that the corporation tax rate will stay at 19% for the foreseeable future, whilst Jeremy Corbyn has pledged to increase this to 26% should Labour win the election.
For companies with patents or other qualifying IP however, this rate can be reduced to 10% on qualifying profits, i.e. profits that relate to a patented product or process.
Why is an election required?
In order to claim Patent Box tax relief you have to elect in to the scheme. The main reason that you may not wish to do this is where you are making a taxable loss. If this loss is due to an enhanced R&D tax relief claim, however, the enhanced expenditure can be disregarded when looking at how profitable your intellectual property is – so it is definitely worth a second look.
Can I claim Patent Box relief without a patent?
No – but obtaining one is not as difficult as you may think. If you have a product or process (or a component within one) that is novel, has an inventive step and is not in the public domain, then you may be able to obtain a patent. On top of this, it is possible to “fast track” an application which means that you could be saving tax even sooner!
So, why wait?
Call YesTax today for an obligation-free chat to see if you are eligible for Patent Box tax relief or able to obtain a patent to qualify for this relief.