Patent Box

James Geary / Randall & Payne

James Geary / Randall & Payne - Credit: Archant

James Geary, Randall & Payne’s New Corporate Tax Manager talks Patent Box’s

James Geary was recruited as Corporate Tax Manager in August 2014. James, previously employed with Baker Tilly and Bishop Fleming, has gained significant knowledge and experience throughout his career in Tax planning for corporate owner managed businesses. James’ key focus is on Research & Development Tax Relief, Capital Allowances, but he also has a wealth of experience in transactions, structuring, investigations, remuneration planning, share schemes, Employment Tax and Patent Box’s

The Patent Box was launched in April 2013 as an important part of the Government’s strategy to build a knowledge economy and encourage growth. It is a new and generous tax relief designed to encourage businesses to retain and exploit their Intellectual Property in the UK.

It is in many ways the natural evolution of R&D Tax Relief, which has been around since 2000 and provides a cash flow benefit to companies developing new technology. Patent Box provides a cash flow benefit to companies who have developed the technology and are now exploiting it.

The tax relief is being phased in between 2013 and 2017 and will enable UK companies with relevant IP income (whether this is sales of patented products, income from an exclusive licence of IP or indeed a sale of IP) to pay a reduced Corporation Tax rate of just 10% on profits arising on that income.The beauty of the relief is that if just a single important component of a product is patented, potentially sales of the whole product can be claimed in the Patent Box.

The savings available mean that it is well worth investigating whether any products or processes can be patented, and perhaps mean that a rethink is needed where patenting had previously not been pursued on grounds of cost. Randall & Payne offer a no obligation meeting to discuss whether the tax relief could apply and, where it appears that it could, can perform an initial benefit assessment to determine the potential savings. We can also, where appropriate, introduce a high quality patent attorney to review whether the technology could potentially be patented.

Since he joined the Firm, Randall & Payne’s clients have already benefited by some of the knowledge James has brought with him. Recently a simple restructuring of a client’s share structure has delivered annual savings in excess of £60k. He has also completed R&D Tax Relief claims saving clients in excess of £50k to date and is in the process of working on a Capital Allowance project which should result in a large lump sum repayment and ongoing savings for another client.

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If you think James and our team can help you please feel free to contact us on 01242 776000 to arrange a free no obligation exploratory meeting.