| Income tax credit |
Schedule of detailed information about components of income tax expense
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Year ended December 31,
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Year ended December 31,
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Year ended December 31, |
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2021 |
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2020 |
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2019 |
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£ |
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£ |
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£ |
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| Current tax |
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| Corporation tax credit |
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1,407,542 |
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1,171,928 |
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|
826,065 |
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| Total current tax credit |
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1,407,542 |
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|
|
1,171,928 |
|
|
|
826,065 |
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| Reconciliation of loss before tax to the tax credit for the year |
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| Loss before tax |
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14,983,467 |
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6,629,844 |
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6,894,049 |
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| Loss on ordinary activities multiplied by the standard
rate of tax of 19%
(2020: 19%
and 2019: 19%) |
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2,846,859 |
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1,259,670 |
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1,309,869 |
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| Non-deductible expenses |
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(1,641,974 |
) |
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(4,556 |
) |
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(3,821 |
) |
| Deferred tax movement on unrecognized fixed asset differences |
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(103,418 |
) |
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(157,728 |
) |
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56,935 |
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| Deferred tax movement on unrecognized timing differences |
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42,462 |
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2,660 |
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2,616 |
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| Deferred tax movement on share-based payments |
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- |
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(152,895 |
) |
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(158,800 |
) |
| Deferred tax asset not recognized |
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(342,227 |
) |
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(278,753 |
) |
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(695,881 |
) |
| Additional allowance in respect of enhanced R&D relief |
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1,042,213 |
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|
868,918 |
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667,671 |
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| Surrender of tax losses for R&D tax credit refund |
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(1,843,915 |
) |
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(1,537,316 |
) |
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(1,178,589 |
) |
| R&D tax credits generated |
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|
1,407,542 |
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1,171,928 |
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|
|
826,065 |
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| Current tax credit |
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|
1,407,542 |
|
|
|
1,171,928 |
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|
826,065 |
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Included
within corporation tax receivable are research and development tax credits of £Nil (2020: £5,485 and 2019: £576,161)
which are included within other income.
Factors
affecting future tax
In
March 2021, the U.K. Government announced that from April 1, 2023 the corporation tax rate would increase to 25% for U.K. companies
with annual profits of £250,000 or higher. This was substantively enacted on May 24, 2021.
If
the Group’s deferred tax balances at the period end were remeasured at 30% this would result in the unrecognized deferred tax asset
increasing by £1,025,688.
TC
BIOPHARM (HOLDINGS) PLC
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
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