Act now on tax relief for patents

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Innovative companies are being urged by a Sheffield tax expert to get ready to make the most of new allowances for their inventions.

Stephen Charles, from accountants Hawsons, says allowances are being introduced next April, but, rather than wait until the last minute, companies should be thinking now about how they can benefit because any profit from a patented product could qualify.

“The good news is that even if a company patents just one component of a new product, then the whole product still qualifies,” says Mr Charles.

Other income, like royalties from licensing a patent, damages for patent infringements and money from selling the patent, is also covered by the ‘Patent Box’ scheme.