Company: NCNA
Filing Date: 2025-04-04
Form Type: DRS
Source: 0000950123-25-003335
Chunk: 76

Company: NuCana plc
Filing Date: 2025-04-04
Form: DRS
Chunk 76
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 as a PFIC may also have other adverse tax consequences, including, in the case of U.S.
Holders that are individuals, the denial of a step-up in the basis of such U.S. Holder’s ADSs, the Pre-Funded Warrants, or the Warrants (as applicable), at death.

Under proposed U.S. Treasury Regulations, if a U.S. Holder has an option, warrant, or other right to acquire shares of a PFIC (such as
the Warrants), such option, warrant or right is considered to be PFIC shares also subject to these default rules discussed above. However, a U.S. Holder generally may not make a QEF Election or mark-to-market election with respect to warrants. In addition, under proposed U.S. Treasury Regulations, if a U.S. Holder holds an option, warrant or other right to acquired stock of a PFIC, the holding
period with respect to shares of stock of the PFIC acquired upon exercise of such option, warrant or other right will include the period that the option, warrant or other right was held. Thus, this will impact the availability of timely QEF Election
and mark-to-market election with respect to such shares as discussed below. Because of the complexity and uncertainty of the treatment of Warrants under the PFIC rules,
each U.S. Holder should consult his, her or its own tax advisor regarding the application of the PFIC rules to the Warrant Shares acquired upon an exercise of Warrants and the availability of, and procedure for making, a qualifying election with
respect to Warrants.

Based on our estimated gross income, the average value of our assets, including goodwill and the nature of our
active business, we believe we were a PFIC for U.S. income tax purposes for the taxable year ending December 31, 2024. There can be no assurance regarding our PFIC status for the current taxable year or any particular year in the future because
PFIC status is factual in nature, depends upon factors not wholly within our control, generally cannot be determined until the close of the taxable year in question and is determined annually. Whether we will be a PFIC in the current or any future
taxable year is uncertain because, among other things, we currently own a substantial amount of passive assets, including cash, and because the valuation of our assets that generate non-passive income for PFIC
purposes, including our goodwill and other intangible assets, is uncertain and may vary substantially over time. In addition,