Presented on World IP Day (26 April 2019) we cover UK tax incentives that support the development of intellectual property (IP) including: R&D Tax Credits Patent Box SEIS / EIS Presented by Steve Livingston | IP Tax Solutions - innovation tax specialists https://www.iptaxsolutions.co.uk

1. Tax Incentives for
Intellectual Property
Steve Livingston | Director - IP Tax Solutions | 26 April 2019

2. A BIT ABOUT US…
▰IP Tax Solutions - a specialist tax advisory firm based here at M-SParc
▰Advise companies from ambitious start-ups to international groups on
accessing and optimising Government tax incentives such as:
○ R&D tax credits
○ Patent Box
○ Seed EIS / EIS
▰Proud to be advising some of the UK’s leading-edge SME companies

3. WHAT WE WILL COVER
Objective is to provide ‘awareness’ of:
▰Why the UK Government is keen to support IP-rich companies
▰How Government tax incentives can apply at each stage of growth
▰What tax incentives are out there to support you in developing IP

4. WHY THE GOVERNMENT IS KEEN TO
SUPPORT IP-RICH COMPANIES
▰Shows that the UK is “open for business”
▰Ambitions to be THE destination of choice in the G20 for global
companies
▰Phased introduction of a series of IP related tax incentives
▰Recognition that IP creation generates high value jobs and export
opps
▰Keeps pace with other countries that have similar tax incentives
▰Retains and attracts IP-rich companies in the UK
▰Won’t mention the “Brexit” word!!!

5. INNOVATION LIFECYCLE
Start-up Phase
▰Start-ups and growing companies can attract funding for IP development
under the
○ Seed Enterprise Investment Scheme (SEIS) or
○ Enterprise Investment Scheme (EIS)
Development Phase
▰R&D tax credit relief – one of the most generous tax reliefs in the UK tax code
Commercialisation Phase
▰Patent Box provides a beneficial rate of corporation tax for qualifying patents

6. SEIS / EIS - RAISING FUNDING GROWTH
▰SEIS for early stage companies (trading less than two years)
▰Can raise up to £150,000
▰Investors receive 50% income tax relief and ‘CGT-free’ exit
▰EIS is for growth companies (typically less than 7 years old)
▰Can raise up to £5m per year
▰Investors receive 30% income tax relief and ‘CGT-free’ exit

7. R&D TAX CREDITS
▰Can apply to any company and can be claimed year on year
▰Average claims £50,000+
▰For development of new or improved products, services or processes
▰Can benefit profitable companies - up to 25% of qualifying exp recoverable
▰Can benefit loss-making companies - up to 33% of qual exp recoverable
▰Claimed in year end corporation tax return - retrospective relief

8. PATENT BOX
▰Came into effect from 1 April 2013
▰Provides a beneficial rate of corporation tax of 10% (v 19%)
▰Beneficial corporation tax rate applies to worldwide profits derived
from qualifying patent income
▰It is an elective tax incentive which companies claim via their
company tax return

9. OTHER IP TAX RELIEFS
▰Video Games Tax Relief
▰Film Tax Relief
▰Animated Tax Relief
▰High-end Television Tax Relief
▰Children’s Television Tax Relief
▰Theatre Tax Relief
▰Orchestra Tax Relief

10. ANY QUESTIONS?
Steve Livingston LLB FCA
Director - IP Tax Solutions Ltd
innovation tax specialists | Patent Box | R&D Tax Credits | SEIS / EIS
T: 01248 305002 / 0161 961 0096
M: 0791 717 3753
E: stevelivingston@iptaxsolutions.co.uk