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Income tax (Tables)
 12 Months Ended
Dec. 31, 2020
Income tax [Abstract]  
Major components of income tax expenses
The major components of the income tax expenses for the years ended December 31, 2020, 2019 and 2018 are:

  
2020
£’000
  
2019
£’000
  
2018
£’000
 
Profit or loss
         
Current tax:
         
R&D tax credit for the year
  
(12,432
)
  
(21,767
)
  
(18,486
)
Tax related to share-based compensation plans
  
-
   
-
   
125
 
Foreign corporation tax on profits for the year
  
84
   
152
   
139
 
Adjustments in respect of prior years
  
(100
)
  
43
   
-
 
Total current tax
  
(12,448
)
  
(21,572
)
  
(18,222
)
Deferred tax:
            
Current year
  
(790
)
  
-
   
-
 
Effect of changes in tax rates
  
(1
)
  
-
   
-
 
Movement in unrecognized deferred tax asset
  
351
   
-
   
-
 
Originating and reversal of timing differences, including adjustments in respect of prior years
  
(379
)
  
(686
)
  
1,674
 
Total deferred tax
  
(819
)
  
(686
)
  
1,674
 
Total income tax credit
  
(13,267
)
  
(22,258
)
  
(16,548
)
Tax related to items recognized in other comprehensive income during the year:
            
Current tax related to share-based compensation plans
  
-
   
-
   
(125
)
Deferred tax on fair value movements of available-for-sale financial assets
  
-
   
-
   
(3,509
)
Tax charged to other comprehensive income
  
-
   
-
   
(3,634
)
Reconciliation of tax expense and accounting profit
Reconciliation of tax expense and accounting profit for 2020, 2019 and 2018:


 
2020
  
2019
  
2018
 
  
£
’000
  
£
’000
  
£
’000
 
Loss before tax
  
(87,360
)
  
(126,189
)
  
(88,178
)
Tax credit using the UK Corporation tax rate of 19% (2019: 19% and 2018: 19%)
  
(16,598
)
  
(23,976
)
  
(16,754
)
Effect of:
            
Non-deductible expenses
  
9,120
   
13,148
   
629
 
Income not taxable for tax purposes
  
-
   
-
   
(954
)
Chargeable gain on sale of assets held for sale
  
-
   
-
   
4,359
 
Other permanent differences
  
-
   
(1
)
  
(38
)
Additional deduction for R&D expenditure
  
(16,286
)
  
(29,365
)
  
(13,691
)
Surrender of tax losses for R&D tax credit refund
  
16,286
   
28,523
   
24,223
 
R&D expenditure credits
  
(13,424
)
  
(22,602
)
  
(19,215
)
Credit to other comprehensive income for share-based compensation plans
  
-
   
-
   
125
 
Movement in deferred tax not recognized
  
8,084
   
12,413
   
4,746
 
Adjustments to tax charge in respect of previous periods - deferred tax
  
(379
)
  
(500
)
  
-
 
Adjustments to tax charge in respect of previous periods
  
(100
)
  
43
   
-
 
State taxes
  
7
   
-
   
-
 
Effects of overseas tax rates
  
24
   
-
   
-
 
Effects of tax rates in foreign jurisdictions
  
(1
)
  
59
   
22
 
Total tax credit included in loss for the year
  
(13,267
)
  
(22,258
)
  
(16,548
)
Components of income tax, geographical classification
The components of income tax are as follows:

  
2020
£’000
  
2019
£’000
  
2018
£’000
 
Current tax:
         
United States:
         
Federal
  
(16
)
  
100
   
137
 
State
  
(-
)
  
15
   
2
 
United Kingdom
  
(12,432
)
  
(21,687
)
  
(18,361
)
Total current tax
  
(12,448
)
  
(21,572
)
  
(18,222
)
Deferred tax:
            
United States:
            
Federal
  
(819
)
  
(644
)
  
(516
)
State
  
-
   
(42
)
  
(1
)
United Kingdom
  
-
   
-
   
2,191
 
Total deferred tax
  
(819
)
  
(686
)
  
1,674
 
Total income tax credit
  
(13,267
))
  
(22,258
)
  
(16,548
)
Other comprehensive income
Tax related to items recognized in other comprehensive income during the year:

  
2020
£’000
  
2019
£’000
  
2018
£’000
 
United States
  
—
   
—
   
—
 
United Kingdom – current tax
  
—
   
—
   
(125
)
United Kingdom – deferred tax
  
—
   
—
   
(3,509
)
Tax charged to other comprehensive income
  
—
   
—
   
(3,634
)