The UK government is one of the more active in the G7 when it comes to encouraging inward investment. For instance, the R&D tax credit regime – a scheme that rewards investment in research and development with tax breaks – is currently going through reforms to increase its impact, while in May, the government launched its new Science and Technology Framework under the newly created Department for Science, Innovation and Technology. According to the DSIT, it will "Challenge every part of government to better put the UK at the forefront of global science and technology this decade through 10 key actions – creating a coordinated cross-government approach."
Those both sit alongside the existing incentives for investment. The centrepiece of that is the SEIS (Seed Enterprise Investment Scheme) was introduced by the government in 2012 to incentivise investment in start-ups. In return for backing the youngest – and hence riskiest – ambitious companies, investors can receive significant tax reliefs. To date, more than 10,000 companies have raised £1.5 billion under SEIS (2012/13-2020/21).
Recently the government announced it was going further and now intends "to provide a boost to start-ups and young companies by widening access to the SEIS and increasing the funding limits, encouraging additional investment and so further supporting the growth of these early-stage companies".
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