The fiscal environment workstream is currently focussed on two key initiatives:
Whilst recognised as a leading centre for medicinal research and development, the UK has been largely overlooked as a medicine manufacturing location. The UK has created a very favourable tax environment for innovation and commercialisation.
In the past, UK companies would locate elements of the supply chain across two or more territories in order to optimise the tax position. The UK tax landscape has changed in recent years to present a much more compelling case for retaining the entire supply chain from development through to manufacture in the UK.
For further details please see the MMIP's Fiscal Paper with a more concise summary in the Fiscal Guide.
The implementation of the Industrial Strategy offers a unique opportunity to enhance further the attractiveness of the UK for Medicines Manufacture. MMIP's Fiscal team led by Richard Turner of FTI Consulting are working closely with the Office of Life Sciences in preparing evidence to support our recommendations.
Any measure or incentive needs to be significant to compete against the likes of Ireland, Switzerland and Singapore.
The quantum of any incentives needs to be significant (circa 15% of investment cost) and anything below 5% is unlikely be sufficient to influence decision making unless part of a wider package. Access to cash remains essential for SMEs which could take the form of grants, loans or tax credits. With this in mind, MMIP's recommendations can be summarised as follows:
We continue to value input and ideas from companies currently or considering manufacturing in the UK. If you would like discuss this further please contact Richard Turner.