Income Tax Credit (Tables)

12 Months Ended

Dec. 31, 2017

The major components of income tax for the years ended December 31, 2017, 2016 and 2015 are as follows:

	2017				2016			2015
	(in thousands)
	£			£				£
Current tax:
In respect of current year U.K.		2,298				1,906			1,182
In respect of current year U.S.		(10	)			(28	)		(6	)
In respect of prior years U.K.		3				235			—
In respect of prior years U.S.		—				3			—
Total current tax		2,291				2,116			1,176

Deferred tax:
In respect of current year U.S.		61				—			—
In respect of prior years U.S.		49				—			—
Total deferred tax		110				—			—

Income tax credit		2,401				2,116			1,176

Current income tax receivable:
U.K. tax		4,207				2,141			1,182
U.S. tax		18				54			—
Current income tax receivable		4,225				2,195			1,182

Deferred tax:
U.S. tax		81				—			—

Current income tax payable:
U.S. tax		—				—			6

The credit for the year can be reconciled to the loss per the statement of operations as follows:

	2017				2016			2015
	(in thousands)
	£			£				£
Loss before tax		(25,486	)			(8,165	)		(6,508	)
Tax on loss at standard U.K. tax rate of 19.25% (2016: 20.00%; 2015: 20.25%)		(4,906	)			(1,633	)		(1,318	)
Effects of:
Expenses not deductible		3,899				1,301			888
Deduction for R&D		(3,051	)			(2,629	)		(1,650	)
Losses surrendered for R&D tax credit		3,051				2,629			1,650
Deferred tax - PY adjustment		(49	)			24			6
Overseas tax payable		10				—			—
R&D tax credit— U.S.		(61	)			—			—
R&D tax credit—current year		(2,298	)			(1,906	)		(1,182	)
R&D tax credit—prior years		(3	)			(235	)		—
Deferred tax asset not recognized		1,007				333			430
Income tax credit		(2,401	)			(2,116	)		(1,176	)