How the new patent box rules will affect SME accounting

KEY POINTS

• Companies already in the old regime can use it until 30 June 2021.
• The old regime may be easier for companies to administer.
• Complications may arise when a company has qualifying old and new patents.
• The new regime offers SMEs the choice of three small claim elections.
• Companies should review their IP portfolio for accounting periods beginning before 1 July 2016.

The new patent box legislation in FA 2016 s 64 incorporates some welcome – and some less so – changes to the rules that small and medium-sized enterprises (SMEs) should be aware of.

There are three scenarios for SMEs claiming the patent box:

1. Claimants in the old regime. Companies with qualifying historic intellectual property (IP) rights that have grandfathered under the old regime.
2. ...