HMRC Patent Box statistics 2020 – 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 2020
Patent Box claims since the scheme began
Updates to 2017-18 – compared to previous year
Patent Box claims in the tax year 2018-19 so far
*defined as micro, small and medium by HMRC
Claims in the tax year 2018-19
23% were classified as ‘Large’, but these companies accounted for most of the relief claimed (90%).
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 (15%) 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 (51%).
Regional analysis of number and value of Patent Box claims, 2018-19 so far
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 £5m.
Industry analysis of number of Patent Box claims, 2018-19 so far
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
Patent Box is equally important and there should be an intrinsic correlation between IP and R&D. £5.3bn was claimed in R&D tax credits in 2018-19 (as of June 2020), but only £992 million had been claimed under the Patent Box scheme.
Businesses are just not leveraging their intellectual property as an asset. GovGrant research shows 83% of SMEs see the importance of commercialising IP, yet only 24% think this is the main point of a patent.
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.