Broad welcome for UK budget proposals supporting bioscience sector and research

UK Chancellor of the Exchequer George Osborne yesterday (March 20) presented his Budget Statement for the coming years, with a number of industry-friendly tax and other fiscal measures that will impact the pharmaceutical and biotechnology industries. Among his proposals are:

• Lowering corporation tax to 20% from 2015.
• Raising the rate of the above-the-line research and development tax credit to 10%.
• Abolishing stamp duty on shares traded on the AIM stock exchange.
• Extending the capital gains tax relief for the Seed Enterprise Investment Scheme.
• Creating an Employment Allowance to take the first £2,000 ($3,006) off the employer National Insurance bill of every company

Steve Bates, chief executive of the BioIndustry Association (BIA), said: "The BIA welcomes a number of measures announced in the Budget today that demonstrate the government's commitment to innovative bioscience companies. Raising the rate of the above-the-line R&D tax credit to 10% and abolishing stamp duty on AIM-traded shares will be particularly welcomed. We agree with the Chancellor when he says 'research and development is absolutely central to Britain's economic future'. We are glad to see his continued commitment to life sciences as a key sector to deliver growth. Today's measures when combined with a well-funded science base in the UK and the strong fiscal support from government for bioscience through initiatives such as R&D tax credits, the Patent Box and the Biomedical Catalyst - all of which were fought for by the BIA - create a supportive environment for this sector.”