HMRC has published a new guide on the Patent Box regime, explaining who can elect for the Patent Box, which patents are eligible, and how and when to claim.

By way of reminder, the essence of the legislation is to allow companies to elect to have a 10% rate of corporation tax on all profits attributable to qualifying intellectual property (“IP”). The change will be good news for companies with patented IP in the UK or a UK company that could patent their technology in the future.

The full benefit of the regime will be phased in over the first four financial years following commencement on 1 April 2013. In the first year the proportion of relevant profits to which the 10% rate will apply is 60% and this will then increase annually to 100% from 1 April 2017.

The new guide is available on the HMRC website.