- Selling patented products - that is sales of the patented product or products incorporating the patented invention or bespoke spare parts
- Licensing out patent rights
- Selling patented rights
- Infringement income
- Damages, insurance or other compensation related to patent rights
Your company can also benefit from the Patent Box if it uses a manufacturing process that is patented or provides a service using a patented tool. In these circumstances, you will need to calculate a notional royalty.
The Patent Box enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions and certain other innovations. The relief will be phased in from 1 April 2013 and the lower rate of Corporation Tax to be applied will be 10%.