Finance and support for companies in the UK

I am frequently asked by founders and companies outside the UK and sometimes those already here for help in accessing finance and business advice in growing their company. Compared to many countries the UK has a plethora of organisations, initiatives and policies that actively support the formation of new businesses, their R & D and their growth. Below, I have mentioned some of the more prominent and most useful - there are others I will cover later - that I have utilised along with the companies I have supported. Feel free to add or comment.

1. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are UK government initiatives that provide tax reliefs to individuals who invest in small and early-stage companies. EIS offers tax reliefs of up to 30% on investments of up to ￡1 million per tax year into qualifying companies, while SEIS provides up to 50% tax relief on investments of up to ￡100,000. The purpose of these schemes is to encourage investment in smaller, high-risk businesses and help them to grow by providing access to much-needed capital. Companies can raise up to ￡250,000 under SEIS and over ￡12m using EIS.
2. The R & D Tax Relief is a government initiative aimed at supporting businesses that are investing in innovation and new product development. Relief is available for SMEs under the R&D tax relief regime effectively in the form of an enhanced corporation tax deduction of a percentage of qualifying R&D costs. Loss-making SMEs usually have the option of receiving a cash payment of an R&D credit in return for surrendering R&D-related losses. Any such payment is capped at a percentage of the losses available for surrender. The two schemes which make up the incentive—SME, for small and medium-sized enterprises, and RDEC, Research and Development Expenditure Credit, with the latter aimed at larger companies. From April 2023 the RDEC rate is 20%, the enhancement rate for SMEs will be 86% with the credit rate at 10%.
3. The UK's Patent Box scheme is a tax incentive aimed at encouraging companies to locate and retain their profitable patent-related activities in the UK. The scheme provides a lower rate of corporation tax on the profits generated from UK sales of patented products or from licensing income from patented products. The reduced tax rate under the Patent Box scheme is currently 10%, compared to the standard rate of corporation tax in the UK of 19%.
4. InnovateUK is a UK government-backed organization that provides funding, support, and expertise to help UK-based companies develop and bring new products and technologies to market. InnovateUK offers a range of services and funding opportunities, including grants, loans, and collaborative R&D projects, to help companies overcome the challenges of innovation and commercialization. The organization works with businesses of all sizes, from start-ups to established companies, to help them access the resources and support they need to succeed.
5. The British Business Bank is a UK government-owned institution that provides funding, support, and advice to small and medium-sized enterprises (SMEs). The bank provides a range of finance options, including loans, equity investments, and guarantees, to help SMEs access the funding they need to start, grow, and scale their businesses. The British Business Bank also provides a comprehensive range of information and support services, including advice on accessing finance, business planning, and growth strategies. By working with a network of commercial partners and intermediaries, the British Business Bank aims to increase the availability of finance for SMEs, provide support for their growth, and stimulate economic activity in the UK.
6. Accelerator programmes for all types of companies exist in the UK by technology category or industry and are a fast and effective means for overseas companies to develop a network of contacts and raise finance. Notable examples include Antler London, Barclays, Bethnal Green Ventures, Distill Ventures, Entrepreneur First and Techstars.