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HMRC Patent Box statistics 2019 – our commentary
The Patent Box scheme scheme is the UK government’s initiative to reduce the corporation tax for innovative companies. HMRC has provided information on the number of companies claiming corporation tax relief under the Patent Box scheme and the value of claims for the year 2017-18 so far.
This page is now archived. It is based on HMRC statistics 2019 – released in October 2019.
Key points to show the value of Patent Box to innovative business in the UK
Source HMRC Patent Box 2019
Patent Box claims since the scheme began
Updates to 2016-17 – compared to previous year
Patent Box claims in the tax year 2017-18 so far
*defined as micro, small and medium by HMRC
Claims in the tax year 2017-18
Around a third (31%) of companies were classified as ‘Large’, but they accounted for 95% relief claimed.
Over half (55%) of the companies that claimed were in the Manufacturing sector (including pharmaceuticals).
The number of companies claiming relief varies significantly across UK regions, with the highest number in the South East (17%) and the lowest in the North East (3%). There is also significant regional variation in the value of relief claimed, companies in London claimed more than half (51%) of the total relief.
Regional analysis of number and value of Patent Box claims by region, 2017-18 so far
Based on government office region
Firms registered in South East
Number of companies claiming
Amount claimed £(m)
Average claim value
South East
Regional allocation is based on the postcode of the company’s registered address, which might not correspond to where the Patent Box activity takes place, so caution must be exercised when interpreting these figures. Figures exclude claims where region is not known. Numbers are rounded to the nearest 5 and amounts are rounded to the nearest £5m.
Industry analysis of number and value of Patent Box, 2017-18 so far
Manufacturing
Wholesale & Retail Trade, Repairs
Professional, Scientific & Technical
Admin & Support Services
Information & Communication
Construction
Agriculture, Forestry, Fishing
Other services activities
Unknown
Financial & Insurance
Transport & Storage
Water, Sewerage and Waste
Manufacturing
Number of companies claiming
Total value of claims (£ million)
Average claim value for
Manufacturing
The following sectors have not been included as the figures have been suppressed to meet confidentiality requirements: Mining and Quarrying; Electricity, Gas, Steam and Air Conditioning; Accomodation and Food; Real Estate; Education; Health and Social Work; Arts, Entertainment and Recreation; Public Admin, Defence and Social Services; Households; Overseas.
HMRC are only able to provide information on the number of companies claiming under Patent Box in each sector.HMRC are not able to show total relief claimed by industry sector without violating HMRC’s disclosure rules. The industry sector accounting for the highest proportion of the total relief claimed is Manufacturing (46%), followed by Professional, Scientific and Technical Activities (27%).
