Why Invest in the UK

The UK provides a robust, thriving environment where you can confidently expand, trade, and invest. In addition to an open, liberal economy, the country also offers world-class talent and a business-friendly regulatory framework. The UK boasts a mature consumer market with a high expenditure level. The legal framework, funding schemes, and streamlined processes make it one of the easier places to launch, build, and expand a business.

Business owners and entrepreneurs have access to a market of more than 60 million consumers, a variety of suppliers and partners, and a number of programmes to support the expansion of companies of all shapes and sizes, including a plan to spend £100 billion on infrastructure.

Tax System & Benefits:

  • Any business with a UK address must pay the UK Corporation Tax on business profits.
  • Any foreign business with a branch or office in the UK must pay the UK Corporation Tax on any profits generated there.
  • The current Corporation Tax rate is 19%, which is the lowest in the G20.
  • The UK provides enticing venture capital programmes to support small and medium – sized businesses in expansion.
  • The Enterprise Investment Scheme and the Venture Capital Trusts offer tax relief for individuals interested in investing in UK small businesses.
  • There are generous incentives for companies investing in R&D in the UK to promote fast-growing, innovative services and products, such as the R&D Expenditure Tax Credit.
  • The Patent Box also offers a 10% Corporation Tax (compared to the usual 19%) on profits from inventions patented in the UK.

Talent Pool

With a labour force of 32 million and an employment rate of around 75% (against a 69% European average), the UK is one of the top European economies for attracting, cultivating, and retaining global talent, according to the Global Talent Competitiveness Index 2018.

The Global Talent Competitiveness Index (GTCI) ranks the UK 2nd in the world for the quality of its universities and ranks 3rd for its pool of global knowledge skills.

The World Economic Forum (WEF) gives the UK a high score in attracting and retaining talent. The country has competitive labour costs, which are lower than Italy, France, or Germany.

According to WEF, UK businesses:

  • Get more flexibility to determine wages than any other country in Western Europe and every country in the G7 apart from Japan.
  • Experience a more straightforward process for recruiting and downsizing than in Germany, the Netherlands, and France.
  • Face lower redundancy costs in the UK than in the Netherlands, Switzerland, France, and Germany.
  • According to the World Bank’s Rigidity Employment Index, the UK is deemed better than Germany, Italy, the Netherlands, Spain, and France for ease of recruiting, downsizing, and changing staff working hours.

Global Innovation Hub

According to the 2019 Global Innovation Index, the UK is among the top 5 most innovative nations in the world. Numerous of the world’s largest and most dynamic businesses, such as Google, Facebook, Amazon, and Coca-Cola, have made the UK their European headquarters.

  • In the UK, 590,000 new businesses were launched in 2017.
  • This demonstrates the UK’s innovative spirit, enterprising workforce, and business-friendly environment, which Forbes claims is the most business-friendly of Europe’s major countries.
  • Foreign-owned businesses spend more than half of all R&D business expenditures in the United Kingdom.
  • This is partially attributable to the UK’s strong tax incentives and financial support for innovation.
  • Small and medium-sized enterprises can gain from venture capital programmes that provide large tax breaks for investors and help the UK become the finest country in Europe to launch, finance, and grow a business.
  • Companies engaging in UK R&D initiatives can benefit from considerable incentives worth up to 230%, thanks to the R&D expenditure tax credit.

Infrastructure

The UK possesses the ideal combination of infrastructural elements to move people and commodities around the country conveniently, and inexpensively, with over 70 airports, 40 major ports, great rail linkages, and toll-free highways. With a modern, privatised rail network connecting major cities to continental Europe via the top-notch Eurostar rail service, the UK boasts the fourth-largest rail network in Europe.

The most excellent air transportation network in Europe is located in the UK. From any of south England’s international airports, including Heathrow, Gatwick, Stansted, City, and Luton Airport, you can travel to almost all of Europe’s major technological markets in under two hours. The UK has more than 100 ports, making it Europe’s second-largest ports market.

Freeports

The following are some ways that Freeports, as carefully planned places with advantageous economic policies, may be able to assist you to accomplish your goals and perhaps save you time and money:

Stamp Duty Land Tax Relief

Buyers of non-residential land and structures outside of Freeports pay 0% on the first £150,000, 2% on the following £100,000, and 5% on the remaining sum. Up until 30 September 2026, freeport tax locations may offer complete relief from Stamp Duty Land Tax on real estate used for eligible business purposes.

Business Rates Relief

On eligible new properties, business taxes are completely waived, and on expanded premises in Freeport tax sites, business rates are partially waived. This can be claimed up to September 30, 2026, and the relief will take effect five years after you receive it.

National Insurance Contributions Relief

For new employees between April 5 and April 6, 2022, Freeports is offering 0% employer National Insurance contributions paid on salaries up to £25,000 per year, valid for 3 years per qualified employee. wherein qualified workers are newly hired and devote more than 60% of their working hours to the Freeport.

Enhanced Capital Allowance

Freeports offer first-year 100% credits for qualifying investments in equipment that is primarily used at a Freeport tax location. This can be used for expenses incurred between the time a tax site is identified and September 30, 2026. This greatly quickens the process by which businesses can receive tax relief for eligible investments in important machinery and plant.

Structures And Building Allowance

In comparison to tax sites outside of Freeports, Freeports offer an enhanced rate of structures and buildings allowance of 10% annually. When work on non-residential structures and buildings begins on the day a tax site is identified and the asset is put to qualified use by September 30, 2026, this option is available. By doing this, firms’ tax relief on their eligible expenses for building, remodelling, or adapting premises to fit your preferred Freeport location will be greatly expedited.