Patent box is important for SMEs and has structuring implications. From April 2017 the small companies tax rate applying is due to be 8.7%. It is important to review ownership arrangements and consider the income tax implications of patent income although a 10% capital gains tax rate may still be possible in some situations. Further venture capital tax reliefs could apply to start-ups and university spin-out companies are now very tax favoured. Conceptually the patent box also has company valuation implications.