Income Tax Credit (Tables)

12 Months Ended

Dec. 31, 2020

The major components of income tax for the years ended December 31, 2020, 2019 and 2018 are as follows:

	2020				2019			2018
	(in thousands)
	£			£				£
Current tax:
In respect of current year U.K.		5,516				4,325			4,239
In respect of current year U.S.		—				(1	)		—
In respect of prior years U.K.		(22	)			(86	)		19
In respect of prior years U.S.		—				—			3
Total current tax		5,494				4,238			4,261

Deferred tax:
In respect of current year U.S.		—				1			11
In respect of prior years U.S.		(1	)			—			(49	)
Total deferred tax		(1	)			1			(38	)

Income tax credit		5,493				4,239			4,223

Current income tax receivable:
U.K. tax		9,818				8,477			4,239
U.S. tax		4				4			24
Current income tax receivable		9,822				8,481			4,263

Deferred tax:
U.S. tax		44				46			47

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

7. Income tax credit (continued)

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

	2020				2019			2018
	(in thousands)
	£			£				£
Loss before tax		(36,175	)			(25,651	)		(18,063	)
Tax on loss at standard U.K. tax rate of 19% (2019: 19%; 2018: 19%)		(6,873	)			(4,874	)		(3,432	)
Effects of:
Expenses not deductible		3,972				2,912			1,389
Deduction for R&D		(7,228	)			(5,667	)		(5,554	)
Losses surrendered for R&D tax credit		7,228				5,667			5,554
Deferred tax - PY adjustment		1				—			49
Overseas tax payable - current year		—				1			—
Overseas tax payable - prior years		—				—			(3	)
R&D tax credit - U.S.		—				(1	)		(11	)
R&D tax credit - current year		(5,516	)			(4,325	)		(4,239	)
R&D tax credit - prior years		22				86			(19	)
Deferred tax asset not recognized		2,901				1,962			2,043
Income tax credit		(5,493	)			(4,239	)		(4,223	)