Is the UK Now the Fiscal Place of Choice for Drug Development?
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May 27, 2025
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With the recent overhaul of the Research & Development (“R&D”) tax regimes, there is a strong case to be made for the UK becoming a fiscal place of choice for drug development. However, R&D incentives alone are not enough, and need to be complemented by a tax framework that supports the manufacture and exploitation of research through competitive tax rates, effective loss relief and support for further investment.
Over recent years this framework has fallen into place with the incremental shaping of a welcoming fiscal landscape. Most recently in the 2024 UK Autumn Budget – and for the first time in many years – there was a commitment to maintain the current R&D tax regime, which signals the final essential components needed for the UK to become the fiscal place of choice for drug development – assurance and reliability.
This report explores the current tax landscape impacting drug development in the UK; together with the challenge of retaining the most promising new companies against the draw from the US, and why redomiciling may come at a greater tax cost.
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May 27, 2025
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