As you may be aware, the new (or “Nexus”) Patent Box regime took effect from 1 July 2021 and grandfathering under the current scheme ends. This means that all companies, irrespective of the date IP has been granted, will need to prepare their patent box claims under the new scheme from this date.
Companies moving into Nexus will need to undertake work to understand the impact Nexus will have on their patent box claim. This includes streaming IP income, the allocation of debits to relevant IP income streams on a just and reasonable basis, and the calculation of a Nexus fraction for each IP income stream using R&D data going back to at least 1 July 2016, or earlier (up to 20 years) if beneficial.
If you have made patent box claims under the grandfathered scheme you will soon need to make claims under Nexus, which could potentially impact the relief you are able to obtain. Depending on your fact pattern Nexus may significantly impact your patent box claim.
See the attached flyer which provides more information on the changes and would welcome the opportunity to discuss how these changes might affect your claim, and what could be done to minimise any impact. Please contact your usual PwC Patent Box contact to discuss next steps.
