Open navigation Open navigation
HMRC Patent Box statistics 2021 – our commentary
HMRC has provided information on the number of companies claiming corporation tax relief within the Patent Box scheme. There is still time to make a claim, if you think you might qualify contact one of our specialist advisors.
Key points to show the value of Patent Box to innovative business in the UK
Source HMRC Patent Box 2021
Patent Box claims since the scheme began
Projected Patent Box claims 2019-20 – compared to previous year
Projected claims in the tax year 2019-20
26% were classified as ‘Large’, but these companies accounted for most of the relief claimed (92%).
Over half (52%) of the companies 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 (2%). There is also significant regional variation in the value of relief claimed, companies in London claimed the largest amount of relief (50%).
*defined as micro, small and medium by HMRC
The statistics published here for 2019-20 will be updated based on a complete set of data in the next annual release (Autumn 2022). The projections have been made based on the amount of claims that have been made so far, and the previous’ years data of the amount of claims that are usually made later on.
Regional analysis of number and value of Patent Box claims, 2019-20 projected
Based on government office region
Firms registered in South East
Amount claimed £(m)
Average claim value
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 £1m.
Industry analysis of number of Patent Box claims, 2019-20 projected
Number of companies claiming
Total value of claims (£ million)
Average claim value for
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 Financial and Insurance (35%), followed by Manufacturing (27%).
Comments from our CEO, Luke Hamm
SMEs are receiving a tiny percentage of the value of the Patent Box scheme. The stand out statistic is that 92% of tax relief is claimed by large companies.
R&D is a good indicator of a company’s potential for a Patent Box claim – it’s a conversation that every R&D tax relief claimant should be having.
We are not seeing enough new patent applications in this country. This is a huge source of untapped funding for UK SMEs and could hold the key to building back better after Covid-19.