Immunocore Holdings plcIMCR
Immunocore Holdings plc Income Taxes Disclosure
Income taxes
Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:
Net loss before income taxes is as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | (74,158) | $ | 16,260 | $ | 11,612 | |||||||||||
| United Kingdom | 43,193 | (74,429) | (76,866) | ||||||||||||||
Ireland | 11,719 | 5,187 | 4,122 | ||||||||||||||
| Other worldwide | 146 | 45 | 242 | ||||||||||||||
| Net loss before income taxes | $ | (19,100) | $ | (52,937) | $ | (60,890) | |||||||||||
The components of income tax (expense) benefit are as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| United Kingdom | $ | — | $ | — | |||||||||||||
| United States - Federal and State | (1,473) | 215 | |||||||||||||||
Ireland | (1,624) | (497) | (436) | ||||||||||||||
| Other worldwide | — | (3) | (19) | ||||||||||||||
Total current tax (expense) | $ | (1,624) | $ | (1,973) | (240) | ||||||||||||
| Deferred: | |||||||||||||||||
| United Kingdom | $ | — | $ | — | |||||||||||||
| United States - Federal and State | (14,790) | 3,823 | 5,873 | ||||||||||||||
Ireland | — | — | (30) | ||||||||||||||
| Other worldwide | — | — | |||||||||||||||
Total deferred tax (expense) benefit | $ | (14,790) | $ | 3,823 | $ | 5,843 | |||||||||||
Total income tax (expense) benefit | $ | (16,414) | $ | 1,850 | $ | 5,603 | |||||||||||
The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities were as follows (in thousands):
| 2025 | 2024 | ||||||||||
| Deferred tax assets | |||||||||||
| Net losses | $ | 150,026 | $ | 69,350 | |||||||
| Fixed assets | 3,356 | 3,874 | |||||||||
| R&D credits | 17,075 | 7,145 | |||||||||
| Stock based compensation | 17,916 | 12,775 | |||||||||
Convertible senior notes | 12,076 | 14,508 | |||||||||
| Other deferred tax assets | 2,658 | 2,090 | |||||||||
| Total deferred tax assets | $ | 203,107 | $ | 109,742 | |||||||
| Deferred tax liabilities | |||||||||||
| Other deferred tax liabilities | (3,051) | (2,788) | |||||||||
| Total deferred tax liabilities | $ | (3,051) | $ | (2,788) | |||||||
| Valuation allowance | (200,056) | (92,164) | |||||||||
| Net deferred tax assets | $ | — | $ | 14,790 | |||||||
The movements in the deferred tax asset valuation allowances are as follows (in thousands):
| 2025 | 2024 | ||||||||||
| Valuation allowance as of January 1, | $ | (92,164) | $ | (83,126) | |||||||
(Increase)/ decrease in valuation allowance through net loss | (100,675) | (10,319) | |||||||||
| Foreign currency translation adjustments | (7,217) | 1,281 | |||||||||
| Valuation allowance as of December 31, | $ | (200,056) | $ | (92,164) | |||||||
Reconciliation of the U.K. statutory income tax rate, the income tax rate of the country of domicile of the Company, to the Company’s effective income tax rate is as follows (in percentages):
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| U.K. statutory income tax rate | $ | 4,777 | 25.0 | % | $ | 13,234 | 25.0 | % | $ | 14,320 | 23.5 | % | |||||||||||||||||||||||
| Foreign tax effects: | |||||||||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||||||||||||||
Foreign rate differential | (2,966) | (15.5) | % | 650 | 1.2 | % | 293 | 0.5 | % | ||||||||||||||||||||||||||
| Share based payment | 3,048 | 15.9 | % | 2,182 | 4.1 | % | 3,293 | 5.4 | % | ||||||||||||||||||||||||||
| R&D expenditure credits | 2,096 | 11.0 | % | 1,234 | 2.4 | % | 1,446 | 2.4 | % | ||||||||||||||||||||||||||
Change in valuation allowance | (40,513) | (212.1) | % | 419 | 0.8 | % | 3,500 | 5.7 | % | ||||||||||||||||||||||||||
| Return-to-provision adjustment | 714 | 3.7 | % | 2,198 | 4.2 | % | 247 | 0.4 | % | ||||||||||||||||||||||||||
State taxes | 4,399 | 23.0 | % | (214) | (0.4) | % | 61 | 0.1 | % | ||||||||||||||||||||||||||
| Other | 70 | 0.4 | % | (90) | (0.2) | % | (50) | (0.1) | % | ||||||||||||||||||||||||||
| $ | (33,152) | (173.6) | % | $ | 6,379 | 12.1 | % | $ | 8,790 | 14.4 | % | ||||||||||||||||||||||||
| Ireland | |||||||||||||||||||||||||||||||||||
| Foreign rate differential | 1,465 | 7.7 | % | 649 | 1.2 | % | 455 | 0.8 | % | ||||||||||||||||||||||||||
Return to provision adjustment | (253) | (1.3) | % | — | — | % | — | — | % | ||||||||||||||||||||||||||
| Other | (47) | (0.3) | % | 189 | 0.4 | % | 49 | 0.1 | % | ||||||||||||||||||||||||||
| $ | 1,165 | 6.1 | % | $ | 838 | 1.6 | % | $ | 504 | 0.9 | % | ||||||||||||||||||||||||
| Other foreign jurisdictions | — | — | % | 7 | — | % | 38 | 0.1 | % | ||||||||||||||||||||||||||
| Non-taxable or Non-deductible Items | |||||||||||||||||||||||||||||||||||
| Share based payments | (7,707) | (40.3) | % | (5,682) | (10.7) | % | (5,110) | (8.4) | % | ||||||||||||||||||||||||||
| R&D expenditure credits | 1,653 | 8.7 | % | 3,064 | 5.8 | % | (3) | — | % | ||||||||||||||||||||||||||
| UK patent box | 50,288 | 263.2 | % | — | % | — | — | % | |||||||||||||||||||||||||||
Convertible loan note deduction | 2,445 | 12.8 | % | 2,067 | 3.9 | % | — | — | % | ||||||||||||||||||||||||||
Other | (179) | (0.9) | % | (43) | (0.1) | % | (567) | (0.9) | % | ||||||||||||||||||||||||||
| Change in valuation allowances | (35,703) | (186.9) | % | (18,014) | (34.0) | % | (12,369) | (20.3) | % | ||||||||||||||||||||||||||
| Effective income tax rate | $ | (16,414) | (85.9) | % | $ | 1,850 | 3.6 | % | $ | 5,603 | 9.2 | % | |||||||||||||||||||||||
State taxes in Tennessee and Kentucky for the years ended December 31, 2025 and 2024, and Kentucky for the year ended December 31, 2023, represented more than 50 percent of the total tax effect within the United States jurisdiction category.
Income taxes paid (net of refunds) are disaggregated by jurisdiction as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| United Kingdom | $ | — | $ | — | $ | — | |||||||||||
| Foreign | 4,643 | 510 | 977 | ||||||||||||||
| $ | 4,643 | $ | 510 | $ | 977 | ||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 2,034 | $ | 169 | $ | 977 | |||||||||||
| Ireland | 2,548 | 341 | — | ||||||||||||||
Other worldwide | 61 | — | — | ||||||||||||||
| $ | 4,643 | $ | 510 | $ | 977 | ||||||||||||
As of December 31, 2025, the Company’s net operating loss carryforwards in the United Kingdom totaled $525.5 million and net operating loss carryforwards in the United States totaled $73.6 million.
As of December 31, 2025, the Company has U.S. R&D credit carryforwards totaling $10.3 million, of which, $9.5 million relates to federal tax credits.
U.K. tax credit carryforwards can be carried forward indefinitely to be offset against future tax liabilities of the company. Non-U.K. net operating loss carryforwards can be carried forward indefinitely. U.S. tax credit carryforwards can be carried forward for 20 years to be offset against future tax liabilities, subject to a minimum tax payment of 25% of the tax charge.
A valuation allowance is established when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The majority of the Company’s deferred tax assets relate to net operating loss and R&D carryforwards that can only be realized if the Company is profitable in future periods. Accordingly, the Company has provided a valuation allowance against a substantial amount of the net deferred tax assets due to uncertainties as to their ultimate realization.
The Company operates in multiple jurisdictions with complex tax and regulatory environment and the Company's tax returns are periodically audited or subjected to review by tax authorities. The following table summarizes tax years that remain subject to examination by tax jurisdiction as of December 31, 2025:
| Jurisdiction | Open Tax Years Based on Originally Filed Returns | ||||
| United Kingdom | 2023-2024 | ||||
| United States | 2022-2024 | ||||
Ireland | 2021-2024 | ||||
The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2025 and 2024, the Company has not recorded any provision for uncertain tax positions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.