The Government’s growth review “The path to strong, sustainable and balanced growth", was recently launched by the Chancellor of the Exchequer, with a road map to provide certainty on the direction of future corporate tax reforms. Within the report it is recognised that the UK has competitive strengths in the healthcare, life sciences and advanced manufacturing (including bio-pharmaceuticals) industries, among others.
Of significance to this sector are government plans in the roadmap to:
- introduce a preferential regime for profits arising from patents, known as a Patent Box. The Patent Box will encourage companies to locate the high-value jobs and activity associated with the development, manufacture and exploitation of patents in the UK. It will also enhance the competitiveness of the UK tax system for high-tech companies that obtain profits from patents; and
- consult on the support R&D tax credits provide for innovation and the proposals of the Dyson Review.
This is welcomed by bioProcessUK, part of the HealthTech and Medicines KTN, as it will be pivotal in helping to build a high value manufacturing sector for biopharmaceuticals by attracting significant investment in bioprocessing assets as recommended in the Bioscience 2015 Report . A recent benchmarking report on biopharmaceutical medicines, undertaken by Unicorn Biologics for the KTN, indicates that the total number of biopharmaceuticals in development globally is in excess of 2200 and of these, 200 are owned by UK companies. The overall value of biopharmaceuticals in development globally is in excess of £200 billion with the UK owned portfolio is valued at around £24 billion (KTN Benchmarking Report 2009). This indicates the potential future value of this sector to the UK economy.
Click here to read full Growth Review :
HM treasury has just launched a consultation on the patent box and R+D tax credits with views to be received by February 11th. Click here to view the consultation
Please contact a member of the KTN team if you would like further information on the benchmarking study or the consultations.