Article:

Patent Box - How Can BDO Help?

09 May 2016

BDO'S Realizer Can Help You Maximise Tax Efficiency From The Patent Box

It's clear that the Patent Box provides new commercial benefits for protecting your intellectual property - but why should businesses act now? True, the savings are phased in, however to make the most of them as quickly as possible it's essential to plan ahead.

Our Patent Box RealiZer is a spreadsheet application which assesses information provided by you to ascertain the likely tax benefit you will be able to claim under the Patent Box regime. You will be provided with a detailed report of the findings generated by the RealiZer, which will not only show how much tax benefit is available to you, but will also enable us to identify areas where the amount of your claim can be improved.

Following a meeting with our specialists to discuss the new rules and how they may impact your business, we will supply you with our calculations of the potential benefits and areas for additional work to maximise them further as part of a small initial project.

Once the benefit of the Patent Box for your business is established, we would move to phase two which would comprise a detailed project scope on exactly how we can maximise the tax savings available, this could include:

  • Considering IP development stages to ensure whether patent could produce tax benefits.
  • Working in partnership with your patent attorney.
  • Reviewing your future research and development claims to identify possible patent opportunities, additional R&D relief and maximise the combined benefit of the two regimes.
  • Working with you to identify qualifying IP and revenue streams and considering opportunities to boost qualifying profits.
  • Discussing the merits of electing into the Patent Box regime.
  • Establishing where qualifying patents should be owned based on the international comparables for IP tax relief.
  • Analysing different bases for calculation of the relief.
  • Developing transfer pricing methodologies and tools for data collection for computing income and expenses at the various stages.

We will also be able to assist with your compliance obligations to ensure Patent Box calculations are properly disclosed in your corporate tax return.

If you would like a meeting to discuss any aspect of the Patent Box, please do not hesitate to contact your usual BDO adviser or Tony Spillett, Head of Patent Box Tax Team.