Important UK investments and Tax Reliefs in a Nutshell

Following BEPS, tax planning has shifted mainly onshore than offshore nowadays. UK internal tax and incentives legislation provide for an excellent investment environment and most important in relation to a non- bureaucratic, quick and objective judicial system. Here are some of the most important UK investment/tax incentives in a nutshell:


Tax reliefs and incentives for business

In addition to the growing diversity of sources of finance, such as crowdfunding and peer-to-peer lending, there are schemes and incentives devised to help companies of all sizes secure funding.

If your business meets certain criteria, it may also qualify for help with business rates or tax relief for research and development.

  • Business rate reliefs

    There is a list of qualifying properties eligible for discounts on their business rates, and how to apply for these reliefs

  • Enterprise Zones

    There are currently 24 Enterprise Zones across the UK and they support new businesses through a range of incentives

  • The Seed Enterprise Investment Scheme (SEIS)

    This aims to encourage investment in small and early stage companies by reducing the risk to investors of investing in these types of companies

  • Employment Allowance

    Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000.

  • Annual Investment Allowance

    Currently stands at £500,000. How to claim, what is covered and how to calculate it

  • Capital Allowances

    A tax relief designed to allow the cost of certain of your company or organisation’s assets to be written off against its taxable profits

  • Enterprise Investment Scheme

    Helps small companies raise finance by offering tax relief to investors who buy new shares in their companies. Check here to see if your business qualifies

  • Capital Gains Roll-over Relief

    You may be able to delay paying Capital Gains Tax if you either sell (‘dispose of’) some business assets or use all or part of the proceeds to buy new assets. This relief means you won’t pay any tax until you sell the new asset

  • Research and development tax credits

    Small businesses can get 225 per cent tax relief on their research and development spending

  • Patent Box

    Enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions and certain other innovations.

  • Social Investment Tax Relief

    Find out if your social enterprise meets the conditions of the social investment tax relief (SITR) scheme and how to apply.

  • Tax reliefs for the creative industries

    A group of five corporation tax reliefs that allow qualifying companies in the creative industries to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits

  • Entrepreneur’s Relief

    When an entrepreneur sells or closes their business, they need only pay ten per cent Capital Gains Tax on any qualifying profits

For more information contact Katerina Nomicos here at Spencer West LLP on +44 (0) 20 7925 8080 or email [email protected].