Under 13% of businesses with patents claim Patent Box relief in UK’s ‘Golden Triangle’ life sciences hub
- A Freedom of Information (FOI) request revealed that 240 businesses in the Golden Triangle claimed Patent Box relief although thousands of patents are granted annually in the region
- Golden Triangle is home to over half of the UK’s 2,400 R&D facilities
Tuesday 18th March 2025 – London – A Freedom of Information (FOI) request revealed that the number of businesses claiming Patent Box relief in the UK’s ‘Golden Triangle’ region was less than 13% of the annual total of newly granted patents in the area.
This is despite the region being a global hotspot for life sciences innovation, and ranking third in Savills’ global index of top 30 life sciences clusters. The request was made by innovation incentives specialist ForrestBrown.
240 businesses in the region claimed Patent Box relief in 2020/21[1], according to the latest available data revealed in the FOI request to HMRC.
However, in the Golden Triangle[2], the life sciences hub spanning London, Cambridge, and Oxford, there were 2,318 patents granted in 2022[3] alone and 1,922 more recently in 2023[4]. This reveals a major gap, suggesting that firms in the region may be missing out on this generous tax incentive for their patented innovations.
Low uptake in a pharma hotspot
Patent Box was introduced in 2013 to encourage companies to keep and commercialise their intellectual property in the UK by allowing them a lower effective rate of Corporation Tax on profits earned from patented innovation.
As a well-known global life sciences cluster, the Golden Triangle is home to over half of the UK’s 2,400 R&D facilities for bioscience and health technology. In H1 2024 alone, life sciences and biotech firms in the region raised £710m in VC investment, highlighting the value that these industries bring to the UK economy.
Despite 802 patents being granted in the UK for health-related products[5], indicating that patented innovations are popular in the life sciences, it’s striking that many businesses in the sector are still not making use of the available tax relief.
Limited awareness remains a barrier
The FOI findings align with ForrestBrown’s recent research, which uncovered a lack of awareness about Patent Box. A survey of 500 business leaders found that just 4% considered maintaining the Patent Box regime the most important tax policy, while nearly a third favoured lower Corporation Tax rates on R&D profits, indicating many are unaware that Patent Box provides this benefit.
Angela Banerjee, Associate Director at ForrestBrown, said: "The Golden Triangle is a true powerhouse for life sciences, home to companies creating groundbreaking patented innovations—whether that’s drug formulations, delivery methods, medical devices, or new technologies. Many of these businesses may be eligible for significant tax reductions through Patent Box relief, but there’s still a widespread lack of understanding about how or when they should claim. The good news is that eligibility for Patent Box is often straightforward and a matter of fact, so it's critical for businesses that have protected their intellectual property to consider the incentive.
“Although it’s encouraging that the government is prioritising investment in the sector through initiatives like the Life Sciences Innovative Manufacturing Fund, it will take time for these efforts to have a tangible impact. In the meantime, incentives like the Patent Box Regime can provide businesses with a competitive edge and help unlock the full value of their investment in innovation.”
[1] FOI data
[2] ForrestBrown’s Freedom of Information Request defines the colloquially known region of ‘Golden Triangle’ as any business that lies within the counties of Oxfordshire, Cambridgeshire and the Greater London Authority
[3] IPO 2022 patents (table 2.1a)
[4] IPO 2023 patents (table 2.1a)
[5] IPO 2023 patents (table 2.2)
