Cheltenham Firms Benefit from Patent Box Tax Incentive
Cheltenham Businesses Benefit from Patent Box Tax Incentive
Cheltenham-based businesses are taking advantage of the government’s Patent Box tax relief scheme to boost their investment in research and development (R&D). The Patent Box allows companies to pay a reduced 10% corporation tax rate on profits earned from patented inventions, encouraging innovation and protecting intellectual property (IP).
Details
According to local accounting firm Randall & Payne, a growing number of Cheltenham businesses have been utilising the Patent Box since its introduction in 2013. The scheme is open to companies of all sizes that hold granted patents and earn income from patented products or services.
“The Patent Box has been a real game-changer for many of our clients,” said Sarah Johnson, a tax partner at Randall & Payne. “It provides a significant tax saving that they can reinvest into developing new innovations and growing their businesses.”
Randall & Payne report that clients across Cheltenham’s thriving tech, engineering, and manufacturing sectors have successfully claimed the relief. Notable examples include Cheltenham-based software company Envision and precision engineering firm FMB Precision, both of which have increased their R&D budgets after benefiting from the scheme.
What You Need to Know
The Patent Box is available to any company liable for UK corporation tax that owns or exclusively licenses qualifying patents. To claim the relief, businesses must ensure their patented inventions meet the scheme’s strict criteria.
Further information and support are available from Cheltenham Borough Council’s business support team and local accountants like Randall & Payne. Companies interested in exploring the Patent Box are encouraged to contact these resources for guidance on eligibility and the application process.