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HMRC internal manual

Corporate Intangibles Research and Development Manual

Patent Box: relevant IP losses: set-off amount: company with more than one trade


Where a company has a set-off amount (CIRD240110) in relation to a trade for an accounting period and the company has another Patent Box trade with relevant IP profits (‘RP’) (CIRD220000), then the set-off amount must be reduced (but not to below nil) by the RP of that other trade for the same accounting period.

The RP that has been used to reduce the set-off amount is then not included in the amount of RP that is used to calculate the Patent Box deduction.