UK R&D tax relief remains highly supportive of life sciences following BIA campaign

The UK’s R&D tax relief regime will continue to support innovative life sciences and biotech companies to conduct essential clinical trials and some pre-clinical work overseas following the publication of new draft legislation. However, some concerns remain, with further clarifications and guidance needed, says the sector’s trade association.

The UK BioIndustry Association (BIA) welcomes the publication of the draft Finance Bill yesterday (July 20, 2022), which legislates for changes to the UK’s internationally competitive R&D tax relief regime.

The legislation, yet to be approved by Parliament, follows the announcement by the former Chancellor, Rishi Sunak, that the regime would be amended to end payments for R&D conducted overseas to “refocus” it on innovation in the UK. BIA responded quickly to highlight to the Chancellor and his officials that the development of new medicines is an internationally-collaborative endeavor and companies must conduct R&D in multiple countries by necessity.