HMRC’s latest Patent Box statistics reveal a clear divergence: the value of relief is rising substantially faster than participation. In 2024/25, Patent Box relief increased by 22.9% to £2.283bn, while the number of companies electing into the regime rose by just 2.4% to 1,735.The figures indicate that the regime is becoming more valuable without a comparable expansion in uptake. [1]
A more valuable relief in a higher Corporation Tax environment
HMRC estimates that Patent Box relief increased from £1.857bn in 2023/24 to £2.283bn in 2024/25. HMRC attributes the increase to both higher profits eligible for relief and the continuing effect of the rise in the main Corporation Tax rate from 19% to 25% on 1 April 2023. [1]
For businesses generating profits from patented products, processes or technologies, the difference between the main Corporation Tax rate and the 10% Patent Box rate means the relief has become materially more valuable. The regime has not fundamentally changed, but the economics have.
Growing patent activity, but limited uptake
The number of companies electing into Patent Box increased from 1,695 in 2023/24 to a provisional 1,735 in 2024/25. This is modest growth, but it continues the longer-term increase in participation. [1]
The rise also comes against a backdrop of greater patent activity. UK Intellectual Property Office data shows that patent applications increased by 19.8% in 2025 to 22,701, the highest level recorded in a decade. Patent applications do not automatically result in Patent Box claims, but the figures point to continued investment in innovation and intellectual property. [2]
Patent Box uptake nevertheless remains limited compared with the scale of wider R&D activity. HMRC estimates that 40,325 R&D tax relief claims were made in 2024/25, compared with 1,735 companies electing into Patent Box. This is not a direct like-for-like comparison: the measures serve different purposes, and a company can make more than one R&D claim in a financial year. However, the scale of the gap highlights an important question for innovative businesses: whether commercialised patented intellectual property is being considered alongside R&D tax relief as part of a longer-term innovation tax strategy. [1][3]
Relief remains concentrated among larger businesses
Large companies represented 28% of Patent Box claimants in 2024/25 but accounted for 95% of the relief provided. London and the East of England represented 21% of claimant companies and received 64% of the total relief. HMRC notes that regional data is based on tax addresses and may not reflect where the underlying economic activity takes place. [1]
The concentration of value among larger businesses reinforces the wider story in the data: Patent Box is delivering substantial benefits, but those benefits are not yet being accessed broadly across the population of innovative companies.
What does this mean for innovative businesses?
Many businesses focus on the immediate benefit of R&D tax relief but may overlook the longer-term tax advantages available when innovation is protected and successfully commercialised. With the main Corporation Tax rate at 25% and qualifying Patent Box profits taxed at an effective rate of 10%, now may be the right time for eligible businesses to review how Patent Box fits within their wider innovation tax strategy. [1]
We’re here to help
Successfully navigating Patent Box starts with understanding whether your intellectual property and income qualify, maintaining clear supporting records and considering the relief as part of your wider innovation tax strategy. By reviewing Patent Box alongside your R&D tax relief position, you can make sure the tax benefits of innovation are considered from development through to commercialisation.
Azets has a dedicated team of innovation tax specialists who can help you assess eligibility, understand the potential benefit and prepare a well-evidenced Patent Box claim.
If you would like support assessing Patent Box eligibility, preparing a claim or understanding how the relief could work alongside your R&D tax relief claims, speak to our team today.
