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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company recorded an income tax benefit of $15.2 million, $2.6 million, $7.3 million and $3.7 million for the year ended December 31, 2019, the three months ended December 31, 2018, and the years ended September 30, 2018 and 2017, respectively. A reconciliation of income tax expense (benefit) at the statutory corporate income tax rate to the income tax expense (benefit) at the Company’s effective income tax rates is as follows (in thousands):
|  | Year ended December 31, |  | Three months ended December 31, |  | Year ended September 30,
|  | 2019 |  | 2018 |  | 2018 |  | 2017
Net loss before taxes |  | $ | (139,008 | ) |  | $ | (23,253 | ) |  | $ | (52,031 | ) |  | $ | (23,380 | )
U.K. statutory tax rate |  | 19.0 | % |  | 19.0 | % |  | 19.0 | % |  | 19.5 | %
Income tax benefit at U.K. statutory tax rate |  | (26,411 | ) |  | (4,423 | ) |  | (9,886 | ) |  | (4,559 | )
Tax incentives / credits |  | (16,312 | ) |  | (3,234 | ) |  | (7,296 | ) |  | (3,702 | )
Non-deductible expenses |  | 4,048 |  |  | 127 |  |  | 1,553 |  |  | 609 |
Adjustments in respect of prior years |  | 96 |  |  | 265 |  |  | (13 | ) |  | 13 |
Operating losses |  | 21,643 |  |  | 3,605 |  |  | 7,317 |  |  | 3,754 |
Tax on property, plant, equipment and intangibles |  | 267 |  |  | 140 |  |  | 233 |  |  | 113 |
Other, net |  | 1,510 |  |  | 915 |  |  | 812 |  |  | 119 |
Total income tax benefit |  | $ | (15,159 | ) |  | $ | (2,605 | ) |  | $ | (7,280 | ) |  | $ | (3,653 | )
Current income tax benefit |  | (14,749 | ) |  | (2,605 | ) |  | (7,280 | ) |  | (3,653 | )
Deferred income tax benefit |  | (410 | ) |  | — |  |  | — |  |  | — |
Effective rate of income tax |  | 10.9 | % |  | 11.2 | % |  | 14.0 | % |  | 15.6 | %
The effective tax rates in the above table for the year ended December 31, 2019, the three months ended December 31, 2018, and the years ended September 30, 2018 and 2017 is lower than the main rate of U.K. tax primarily due to administration of the U.K. research and development tax credit, which is included within the tax incentive/credits line in the table above. Deferred tax assets and liabilities consisted of the following at December 31, 2019 and 2018 (in thousands):
|  | December 31,
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Other differences |  | $ | 1,522 |  |  | $ | 2,870 |
Tax losses |  | 19,624 |  |  | 7,851 |
Fixed assets |  | 896 |  |  | 621 |
Total deferred tax assets |  | 22,042 |  |  | 11,342 |
Valuation allowances |  | (21,632 | ) |  | (11,342 | )
Net deferred tax asset (liability) |  | $ | 410 |  |  | $ | — |
Deferred tax assets resulting from loss carry forwards, fixed assets and retirement benefits, with total deferred tax assets increasing by $10.7 million in 2019. The Company has recorded a valuation allowance against the net deferred tax asset where the recoverability due to future taxable profits is unknown. The $0.4 million deferred tax asset balance is related to the Company's U.S. entity. At December 31, 2019, the Company had U.K. trading losses carry forward of $115.4 million. These losses are carried forward indefinitely under local law, but are subject to numerous utilization criteria and restrictions. As required by the authoritative guidance on accounting for income taxes, the Company evaluates the realizability of deferred tax assets at each reporting date. Accounting for income taxes guidance requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In circumstances where this is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, the Company establishes a valuation allowance. The Company recorded valuation allowances in the amounts of $21.6 million and $11.3 million at December 31, 2019 and 2018, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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