The Association of the British Pharmaceutical Industry (ABPI) has welcomed the Chancellor of the Exchequer’s announcement that the Government will review the Entrepreneur’s Relief (ER) scheme.
The ER scheme has the potential to boost the UK innovation landscape for spin-out pharmaceutical companies. The ABPI called for such a review in its budget submission to the Chancellor earlier this year. This particular recommendation was developed in collaboration with OBN, the membership organisation that brings together the UK’s emerging life sciences companies, corporate partners and investors.
ABPI Director of Government and External Affairs, Audrey Yvernault, said: “We are delighted that the Government has listened to industry by agreeing to review this scheme. We called for Entrepreneurs Relief (which applies to Capital Gains Tax) to be amended as it is particularly necessary for successive rounds of investment in life science companies. It is encouraging that the Government is examining this in order to support UK innovation”.
OBN Chief Executive Jon Rees said: “OBN warmly welcomes the Government’s proposal to review the Entrepreneurs Relief treatment of founders of companies that use intellectual property to which they have contributed, as we suggested.
“We would strongly urge Government neither to limit the amendment to spin-outs but all start-ups, nor limit it to academic founders, in the interests of enhancing the investment environment for the UK’s Life Sciences sector.”