Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v3.24.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 15. INCOME TAXES

 

   

Year Ended

    

Year Ended

  
    December 31, 2023     December 31, 2022  
    £     £  
Current tax                
Corporation tax credit     1,088,729       1,720,000  
Total current tax credit     1,088,729       1,720,000  
                 
Reconciliation of loss before tax to the tax credit for the year                
Loss before tax     6,995,682       3,033,601  
                 
Loss on ordinary activities multiplied by the standard rate of tax of 23.5% (2022: 19%)     1,643,985       576,384  
                 
Adjustments in respect of prior years     45,136       154,422  
Non-deductible expenses     (1,497,764 )     (1,834,581 )
Super deductions     -       13,178  
Change in deferred tax asset     -       (186,879 )

Change in valuation allowance

     357,897      

(671,566

 )
Foreign rate differential    

(29,318

 )     -  
Other    

(233,096

 )     -  
Additional allowance in respect of enhanced R&D relief     -       4,198,115  
Surrender of tax losses for R&D tax credit refund     -       (2,109,111 )
Adjustments relating to GAAP     (241,704 )     14,460  
R&D tax credits generated     1,043,593       1,565,578  
Current tax credit     1,088,729       1,720,000  

 

As of December 31, 2023, the Company’s net operating loss carryforwards in the United Kingdom totaled £16.4 million. U.K. tax credit carryforwards can be carried forward indefinitely to be offset against future tax liabilities of the Company. As of December 31, 2023, the Company’s net operating loss carryforwards in the United States of America totaled £1.2 million. U.S. tax credit carryforwards can be carried forward indefinitely to be offset against future tax liabilities of the TC BioPharm (North America) Inc.

 

Significant components of the Company’s deferred tax assets as of December 31, 2023 and 2022 are summarized below.

SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS 

    2023     2022  
Deferred tax assets:                
Net operation losses   £ 4,357,668     £ 4,433,305  
Fixed asset     79,338       71,426  
Other     17,946       308,118  
Total deferred tax assets     4,454,952       4,812,849  
                 
Valuation allowance     (4,454,952 )     (4,812,849 )
                 
Net deferred tax asset, net of valuation allowance   £ –     £ –  

 

After weighing all available positive and negative evidence for the periods ended December 31, 2023 and 2022, the Company has recorded a valuation allowance of £4,454,952 and £4,812,849, respectively.

 

The Company continuously monitors its current and prior filing positions in order to determine if any unrecognized tax positions should be recorded. The analysis involves considerable judgement and is based on the best information available. For the periods ended December 31, 2023 and 2022, the Company is not aware of any positions which require an uncertain tax position liability.