The UK general election result generated a lot of heat but did not shed much light on the future. The outcome for tax issues relating to biotechnology and technology businesses is clear and simple – no change. Whatever a minority Conservative administration does, or is forced to do, in order to continue, there are no implications there will be any changes, good or bad, to the fiscal environment that will affect existing UK tax regimes, such as EIS relief, R&D tax credits, the patent box or EMI share schemes.
Any changes that are relevant to public finances would need to be at a much more macro level regarding income tax, national insurance or pensions. Looking towards Brexit, we will have to wait a long time before we have any detail or anything on which business decisions can be made, so in the meantime, as far as we’re concerned, it is business as usual with HMRC and the UK tax environment.
managing partner, Confluence Tax