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This article applies to:

  • Product: ONESOURCE Corporate Tax

Patent box

Use the
Patent box
 to review each trade's profits, calculate the FA2016 deduction and R&D fraction, then aggregate relief and group claims across sheets.

Overview

The
Patent box
 is designed to analyse tax relevant information related to the
Patent box
 regime. It implements rules introduced to reduce the tax paid on profits from patents and intellectual property. The aim is to calculate how much of the company's profit comes from patents and innovation schemes, so that it qualifies for the reduced tax rate.
While the
Patent box
 provisions also apply to groups of companies, the group calculation is based on data calculated at company level.
The
Patent box
 provides the following 4 sheets:
  1. Patent box relief
  2. Patent box - FA 2016 IP
  3. Relevant IP income sub-streams
  4. Expenditure for R&D fraction

Complete the sheets

Patent box relief
: Aggregate eligible profits or losses, set-off amounts, and group relief claims/surrenders for all trades.
note
This sheet is automated.
  • It shows relevant IP profit or loss amounts calculated in all
    Patent box – FA 2016 IP
     sheets for all inserted businesses.
  • It shows the amounts of group relief claimed and surrendered on a group calculation level.
  • It calculates eligibility for, and the maximum amount of, the
    Patent box small claims amount
    .
  • A subsection is added for each inserted accounting period, so all calculations remain specific to that period.
Patent box - FA 2016 IP
: Calculate the deduction, amount available for group offset, and the carry-forward position according to FA2016 rules.
note
This sheet is optional and can be developed for every trade.
  • This sheet uses figures calculated on the
    Relevant IP income sub-streams
     and
    Expenditure for R&D fraction
    sheets.
  • It uses data from the
    Patent Box relief
     sheet to calculate the deduction, the amount available for group offset, and the carry-forward position.
  • A column is added for each inserted
    Accounting period
    .
  • Manually adjust automatically calculated figures.
Relevant IP income sub-streams
: Calculate the IP sub-stream profit or loss, which is the starting point of the calculation on the Patent box – FA 2016 IP sheet.
note
This sheet is developed automatically together with the
Patent box – FA 2016 IP
 sheet.
  • Complete this sheet manually, or import data into it.
  • It calculates relevant IP profit or loss broken down to individual IP sub-streams.
  • Relevant IP profits or losses are linked to the
    Patent box – FA 2016 IP
    sheet.
  • You can also use the small claims calculated on the
    Patent box relief
    sheet.
  • Complete the
    R&D fraction
     section to calculate the R&D fraction.
  • Alternatively, you can complete the
    Expenditure for R&D fraction
    sheet. New rows will be added for every
    Accounting period
    inserted into calculation.
Expenditure for R&D fraction
: Track cumulative expenditure per IP asset, which feeds into the R&D fraction.
note
This sheet is optional and can be developed for every
Relevant IP income sub-streams
 sheet in the calculation.
  • This sheet tracks cumulative expenditure per IP asset.
  • It transfers the carried-forward figures to the
    Relevant IP income sub-streams
     sheet to the R&D fraction section, where the fraction calculation takes place.
  • The carried-forward amounts will be the brought-forward amounts of the following period.