Business tax – guidance

The Patent Box: calculating relevant profits

How to calculate the profits that qualify for Patent Box, before calculating the deduction.

Detail

Not all of your company profits may come from exploiting patented inventions. In order to calculate the Patent Box deduction, you will need to calculate the proportion of your income attributable to exploiting patents and innovations.

This guide explains how to make the calculation using 2 different methods - known as ‘formulaic’ and ‘streaming’ - and when to use them.