Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income tax credit

v3.22.1
Income tax credit
12 Months Ended
Dec. 31, 2021
Major components of tax expense (income) [abstract]  
Income tax credit

 

7. Income tax credit

 

   

Year ended

December 31,

   

Year ended

December 31,

    Year ended December 31,  
    2021     2020     2019  
    £     £     £  
Current tax                        
Corporation tax credit     1,407,542       1,171,928       826,065  
Total current tax credit     1,407,542       1,171,928       826,065  
                         
Reconciliation of loss before tax to the tax credit for the year                        
Loss before tax     14,983,467       6,629,844       6,894,049  
                         
Loss on ordinary activities multiplied by the standard rate of tax of 19% (2020: 19% and 2019: 19%)     2,846,859       1,259,670       1,309,869  
                         
Non-deductible expenses     (1,641,974 )     (4,556 )     (3,821 )
Deferred tax movement on unrecognized fixed asset differences     (103,418 )     (157,728 )     56,935  
Deferred tax movement on unrecognized timing differences     42,462       2,660       2,616  
Deferred tax movement on share-based payments     -       (152,895 )     (158,800 )
Deferred tax asset not recognized     (342,227 )     (278,753 )     (695,881 )
Additional allowance in respect of enhanced R&D relief     1,042,213       868,918       667,671  
Surrender of tax losses for R&D tax credit refund     (1,843,915 )     (1,537,316 )     (1,178,589 )
R&D tax credits generated     1,407,542       1,171,928       826,065  
Current tax credit     1,407,542       1,171,928       826,065  

 

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)