Reorganisation after Brexit

United Kingdom Investment Incentives

R&D: Tax and cash incentives available nationally

Established R&D and patent tax regime in place supporting R&D activity and capital expenditure associated with R&D. Cash Grants tend to be targeted to specific objectives and are usually competitive – in response to specific calls for competition. Depending on the sector and activity – cash grants could be upto 50% for large companies.

Jobs creation & CAPEX: Limited tax and cash incentives available to parts of the UK

Pockets of funding available to parts of the UK through devolved authorities. New investment zones with tax zones are in the process of being set up which will offer a range of tax incentives. Northern Ireland still has access to Regional Aid (maximum aid intensity of 15% for large companies) and the region is still subject to EU state aid rules.

Training: Limited subsidies and cash incentives available nationally

Apprenticeships and other training support available nationally. Cash grants are limited.

Green and other: Limited tax and cash incentives available nationally

Support in this area has predominantly been in the form of tax incentives or subsidies for end users. The UK government have also announced funding to reduce the nations dependence on gas – including supporting new nuclear schemes.

Overview: Funding programmes are currently limited, but the UK Government is in the process on developing new investment programmes following the countries exit from the EU.

Capital:   London
Surface area: 
243,610 km²
Population: 
67.3 mil
Unemployment:   
3.6%
Currency: 
Pound sterling (= EUR 1.14
GDP growth: 4.0% 
FDI net inflow (% of GDP) in 2021:
0.2%

Prospective sectors: The majority of funding currently is aimed at R&D and the ‘leveling-up’ agenda. Key sectors being targeted include Advanced Manufacturing, Aerospace, Creative Industries, Digital and Tech, Green Industries and Life Sciences

Worth knowing: 2023 has seen the reorganization of a few key government departments responsible for incentives. The Department for International Trade (DTI) and the Department for Business, Energy, and Industry Strategy (BEIS) has been reorganised to form the Department for Business and Trade (DBT), the Department for Energy Security and Net Zero (DESNZ) and the Department for Science, Innovation and Technology (DSIT)