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HMRC Patent Box statistics 2023 – our commentary

HMRC has provided information on the number of companies claiming corporation tax relief within the Patent Box scheme.

Key points to show the value of Patent Box to innovative business in the UK

Source HMRC Patent Box 2023

Patent Box claims since the scheme began

Projected Patent Box claims 2021-22 – compared to previous year

Projected claims in the tax year 2021-22

24% were classified as ‘Large’, but these companies accounted for most of the relief claimed (94%).

Over half (61%) of the companies were in the Manufacturing sector (including Pharmaceuticals).

The number of companies electing in to Patent Box varies significantly across UK regions, with the highest number in the South East (15%) and the lowest in the North East (3%). There is also significant regional variation in the value of relief claimed, companies in London claimed the largest amount of relief (44%).

*SMEs defined as micro, small and medium by HMRC The statistics published here for 2021-22 will be updated based on a complete set of data in the next annual release (Autumn 2024). 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.
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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 94% 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.

I still feel concerned about the stark contrast in value and uptake between the R&D and Patent Box schemes.

See other years’ HMRC statistics

HMRC Patent Box statistics 2022
HMRC Patent Box statistics 2021

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