Nottingham-based integrated drug discovery partner, Sygnature Discovery has acquired one of North America’s largest discovery Contract Research Organisations, Canada-based NuChem Sciences. This acquisition cements Sygnature as one of the world’s largest players in integrated drug discovery phase solutions and advances their vision to become the global market leader. The transaction creates a significant competitive advantage for Sygnature as it expands its global footprint and business operations to leverage discovery expertise in the North American market. Marc Lebel, Pharm. D., president and chairman at NuChem Sciences, said: “Our company goals and values fit perfectly with those of Sygnature in becoming a global leader in drug discovery services. We are delighted to become an integral part of the Sygnature Group, allowing us to leverage our deep scientific expertise and presence across North America and Europe, to the benefit of customers and employees.” NuChem Sciences, a discovery CRO in the North American market, employs over 300 staff across centres of excellence in Montreal and Quebec City, Canada, where the company will continue to operate and drive further market expansion across North America. Founded in 2011, NuChem Sciences delivers expert integrated and standalone discovery solutions across medicinal, synthetic, scale-up, process and computational chemistry, as well as DMPK, in vitrobiology and in vivo pharmacology. Additionally, the company provides protein chemistry services and offers crucial knowledge-based expertise in structural biology at the initial stages of drug discovery to global biotech and pharmaceutical companies. Following this acquisition, Sygnature Discovery will have more than 1,000 staff across 53 nationalities, including over 900 scientists who work on standalone and integrated drug discovery programmes for pharma, biotech, VCs, and NFPs. Founded in 2004, the company has successfully delivered over 40 novel drug candidates into pre-clinical development and 22 into clinical trials, with its scientists named on over 170 patent applications. Dr Simon Hirst, CEO at Sygnature Discovery, said: “This acquisition represents a pivotal milestone in the Sygnature growth plan, allowing us to deliver better discovery solutions to customers around the world. “The addition of NuChem Sciences greatly enhances Sygnature Discovery’s offering, making us a highly differentiated and integrated drug discovery partner with unrivalled scale and range. NuChem is a like-minded business that complements Sygnature’s existing services, towards our joint mission of improving the world’s health.” In addition, Marc Lebel commented that “this acquisition could not have taken place without the support and partnership of Amorchem, Investissement Québec, Fonds de solidarité FTQ and the Business Development Bank of Canada; I would like to extend my thanks to all involved.” This is the third in a series of acquisitions over the last sixteen months that have formed part of Sygnature’s global expansion, following the investment by Five Arrows in Summer 2021. Previous acquisitions made were Peak Proteins in April 2022 and SB Drug Discovery in January 2023.

David Jones, corporate finance advisory partner at Deloitte in the Midlands, said: “The strategically important acquisition of NuChem Sciences marks a significant milestone for Sygnature Discovery both locally and globally. The deal will boost Sygnature’s standing on the international stage, facilitating its growth across a global customer base.

“We were delighted to be involved in this transaction, which brings together two major players in the preclinical drug discovery market. Having worked closely with the Sygnature team to fulfil their strategic objectives, the deal signifies an exciting new period of growth for the team as it builds out its service offering.”

Streets Chartered Accountants covers tax topics, NICs, alcohol duty changes and Investment Zones in its latest monthly news roundup. South Yorkshire first UK Investment Zone It was announced as part of the Spring Budget 2023 measures that the government would establish twelve Investment Zones across the UK, subject to successful proposals. South Yorkshire has now been named as the first of the UK Investment Zones… What do we mean by cost of living? A simple dictionary definition of cost of living would probably say something like: The level of prices relating to a range of everyday items… The problem is, the price inflation for food, or fuel for your car, or heating costs will vary. Although inflation is quoted as just under 9% in the UK, this disguises the true rate of cost increases in different sectors… Getting a SA302 tax calculation The SA302 tax calculation and tax year overview documents are commonly used as evidence of income for loan or mortgage purposes for the self-employed. The forms have become more widely used since the mortgage rules have required evidence of income for the self-employed. The SA302 provides this evidence for the last four years Self-Assessment tax returns… Tax on savings interest If you have taxable income of less than £17,570 in 2023-24 you will have no tax to pay on interest received. This figure is calculated by adding the £5,000 starting rate limit for savings (where 0% of the interest is taxable) to the current £12,570 personal allowance. However, it is important to note that if your total non-savings income exceeds £17,570 then the starting rate limit for savings is unavailable… Tax on property you inherit If you inherit property, you are usually not liable to pay tax on the inheritance you receive. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the estate beneficiaries… When you don’t have to pay Capital Gains Tax In most cases, there is no Capital Gains Tax (CGT) to be paid on the transfer of assets to a spouse or civil partner. There is, however, still a disposal that has taken place for CGT purposes, effectively, at no gain or loss on the date of the transfer. When the asset ultimately comes to be sold the gain or loss will be calculated from when the asset was first owned by the original spouse or civil partner… Filling gaps in your NIC record National Insurance credits can help qualifying applicants fill gaps in their National Insurance record. This can assist taxpayers in building up the number of qualifying years of National Insurance contributions and which can also increase the amount of benefits a person is entitled to, such as the State Pension… Check a UK VAT number is valid The check a UK VAT number service is available at: www.gov.uk/check-uk-vat-number. This service allows users to check:

• if a UK VAT registration number is valid; and
• the name and address of the business the number is registered to…

Alcohol duty changes Changes in the way alcohol is taxed came into effect on 1 August 2023. The new system of calculating alcohol duty for all alcoholic drinks will be made using standardised tax bands based on alcohol by volume (ABV). This replaces the previous alcohol duty system, which consisted of four separate taxes covering beer, cider, spirits, wine and made-wine… The Construction Industry Scheme The Construction Industry Scheme (CIS) is a set of special tax and National Insurance rules for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be aware of the tax implications of the scheme… HMRC pledges £5.5m in partnership funding HMRC is awarding £5.5 million to voluntary and community organisations to support customers who may need extra help with their tax affairs… Tax Diary August/September 2023

A remote robotics company focused on subsea operations has appointed Chesterfield-based specialist B2B technology PR and content agency Roaring Mouse to help support strategic communications as the company moves to its next round of fundraising. Based in Aberdeen, HonuWorx combines autonomous submarines, robotics, AI and advanced communications technologies to reduce the risk, cost and carbon footprint of subsea exploration and intervention. It enables a wide range of subsea activities to occur without humans having to leave shore. HonuWorx has engaged Roaring Mouse to reach and help establish a ‘SpaceX of Subsea’ reputation for the company with prospects and potential partners in the European defence, offshore energy and ‘blue economy’ sectors, as well as potential investors. James Taylor, MD of Roaring Mouse, comments: “HonuWorx is a true pioneer with a fantastic robotics, AI and communications proposition, a great team and a fascinating ‘SpaceX of subsea’ story to tell. The technology it is bringing to market could fundamentally change subsea access in much the same way SpaceX is opening up access to space, and we are thrilled to be on board.”

With the nomination deadline (Thursday 31 August) approaching quickly for the East Midlands Bricks Awards 2023, there’s only four weeks left to make your submissions for the annual celebration of the property and construction industry! Scheduled to take place on Thursday 28 September, the Bricks shine a light on the outstanding work of those shaping the landscape of our region, recognising development projects and people in commercial and public building across the East Midlands – from offices, industrial and residential, through to community projects such as leisure schemes and schools. We also highlight the work of architects, agencies and those behind large schemes. The glittering awards ceremony revealing winners, at the spectacular Trent Bridge Cricket Ground, will also offer the perfect chance to forge new contacts with property and construction professionals from across the region. The event will additionally feature Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, as keynote speaker. Commenting on the East Midlands Bricks Awards, Rob Day, chairman and founder of Blueprint Interiors, said: “Over the last four years we have sponsored and also been an awards finalist. This profile has definitely helped us raise our brand awareness and helped us win bigger and better contracts.” Entries for the awards are open until Thursday 31 August. To nominate your (or another) business/development for the East Midlands Bricks Awards 2023, please click on a category link below or visit this page:

Book your tickets now

Tickets can now be booked for the East Midlands Bricks Awards 2023 – click here to secure yours. The special awards evening and networking event will be held on Thursday 28 September 2023 in the Derek Randall Suite at the Trent Bridge Cricket Ground from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region, and hear from Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, our keynote speaker. Dress code is standard business attire. Thanks to our sponsors:                                                             To be held at:

Challenges against R&D claims are set to ‘intensify’ for businesses, after HMRC uncovered more than £1 billion of ‘fraud and error’. A new report from HMRC has revealed £1.13 billion of fraud and error in research and development tax credits claimed by SMEs in 2020-21. According to the report, the overall level of error and fraud for both R&D tax relief schemes (SME and RDEC) across all sectors of the economy was the equivalent to 16.7% of claims, significantly higher than HMRC’s previously published estimate of 3.6%. Ross Northall, BDO partner and head of Innovation Taxes for the North, said: “This announcement will have a significant impact on businesses, particularly SMEs, as it cements HMRC’s stance on R&D claims and the level of challenge it’s prepared to undertake against potential fraud and error. What is clear is this level of scrutiny is not going to go away and will in fact intensify, as HMRC seeks to use newly introduced legislation to challenge claims.” In August, tighter rules around R&D claims will come into force. Claimants or their R&D advisers will have to fill in an Additional Information Form which is designed to allow HMRC to quickly assess the validity of any claim and the level of expertise of any R&D agent used to prepare the claim. HMRC has also risk-profiled claims across the different business sectors and by size of claim. Northall added: “Businesses will need to ensure more than ever that they are clearly demonstrating their qualifying activities to HMRC when submitting claims and, where they use professional advisors to support them in doing this, that they have the skills needed to provide high quality advice and support to these businesses. “Failure to do so could result in HMRC opening enquiries that will prove expensive and time consuming to deal with. Should HMRC be successful in their challenge, it will also result in the denial of relief, potential penalties, and the possibility of HMRC also looking at earlier submitted claims, further compounding the problem.” The figures come as the government unveiled draft legislation to change the UK R&D regime, with proposals to merge two schemes – the Research and Development Expenditure Credit (RDEC) and the small or medium enterprises (SME) R&D relief. The aim of the single R&D relief scheme is to achieve tax simplification, including having a single set of qualifying rules, particularly around subcontractor costs and in the restriction of claims where R&D work is deemed to be subsidised. Northall warned that the changes could go ‘too far too fast’ if implemented from April 2024, hitting innovative businesses and creating more uncertainty. He said: “Following the review of R&D reliefs launched in Rishi Sunak’s 2021 Spring Budget, the government has taken many steps to reduce the costs of the UK’s R&D scheme to get better ‘value for money’ – while this is understandable, I’d argue that this latest move is going to prove the most disruptive yet. “Given all the recent changes, creating yet more uncertainty by changing the R&D regime again for accounting periods beginning on or after April 2024 could risk turning innovative businesses away from investing in the UK.” The current SME and Research & Development Expenditure Credit (RDEC) schemes offer different rates of relief with the SME scheme being more generous – even after the reductions in tax relief from 1 April 2023. Northall continued: “Under the proposals, many start-up and growing businesses will be concerned that they will get even less tax relief under a combined scheme – although the higher relief for R&D intensive businesses looks set to continue – albeit running alongside the new scheme. “Businesses understand that the government will move the goalposts to make it harder for fraudsters to win tax reliefs from HMRC. But, making radical changes to tax law at such short notice not only creates uncertainty for compliant businesses it also risks introducing new rules with loopholes that fraudsters can exploit further down the line. “The government has not made a final decision to push these changes through from April 2024 and I believe the changes should be delayed until at least 2026 so that they don’t damage the R&D investment the relief is supposed to support.”