How to quadruple dip into the Patent Box to maximise profits

Patent holders can boost the benefits of the UK's Patent Box tax incentive by setting up holding companies, an advice document published by Thomson Reuters says.

The Patent Box was introduced by Chancellor George Osborne in a bid to encourage the commercialisation of intellectual property by slashing the corporate tax rate for profits generated from patents.

“Companies can double, triple or quadruple dip,” states the white paper, which was written by Bob Stembridge, a customer relations manager at Thomson Reuters and published on 5 June. “For example, a company can set up an IP holding company which exclusively licenses another company and both companies can claim the relief.”