Transcript Why Invest in the UK Client Presentation
Business is GREAT Come to the UK You’re Welcome
1 Presentation title - edit in the Master slide UK Trade & Investment Ostrava, 12 th June 2014
Why UK ?
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3 There are many reasons for which UK is the top investment target destination ▪ Reduction of corporation tax to 20% by 2015 ▪ ▪
Attractive tax regime
Most competitive tax regime in G20 R&D tax credits, Patent Box
Easy access to talent
▪ ▪
Favorable business environment
Enterprise zones Ease of set-up and operation – Language – Stable business environment & efficient legal system
Vast market opportunity
▪ ▪ 6 th largest economy in the world Excellent international accessibility ▪ Robust infrastructure ▪ ▪ ▪ 4 of the world’s top ten universities Strong research base Educated & flexible workforce
High quality of life
▪ High standard of living, appreciated by relocating international executives ▪ Rich cultural heritage easily accessible language-wise
4 Ease of Doing Business in the UK Annually the World Bank ranks the ease of doing business globally. The 2014 rankings on the ease of doing business are based on the average of the economy’s rankings on 10 topics: – – – – – – – – – – Starting a business Dealing with construction permits Getting Electricity Registering Property Getting Credit Protecting investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency
Country UK
Ireland Germany Netherlands France Spain Italy
10 th place globally Ease of Doing Business Rank 2014 10
15 21 28 38 52 65
Source: Doing Business 2014, The World Bank, International Finance Corporation
Image Library - General - 2013
UK Universities
The UK is home to the top 4 universities in Europe and 7 of the top ten:
1 2 3 4 5 6 7 8 9 10 University of Cambridge, UK University College London, UK Imperial College London, UK University of Oxford, UK
ETH Zürich, Switzerland
University of Edinburgh, UK
Ecole Polytechnique Federale de Lausanne, Switzerland
Kings College London, UK
Ecole normale superieure, Paris, France
University of Bristol, UK
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6 UK Labour Costs are very competitive compared to other major European locations The UK has the lowest labour costs per hour out of ten major European locations. (in EUR per hour) 40.1
38.4
38.0
34.3
33.2
31.3
29.0
28.1
21.1
20.9
10.3
Source: Eurostat – Hourly Labour Costs 2013
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The UK should have the fastest broadband of any major European country by 2015
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UK Taxation and Government Support for R&D
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The UK Government is committed to creating the most competitive tax regime in the G20 The standard rate of corporation tax in the UK is 21%.The specific rates for UK corporation tax are detailed in the table below.
UK corporation tax rates 2013/14
Small companies’ rate 20% Marginal relief Main rate 21%
Profit (£)
0-300,000 300,001-1,500,000 1,500,001 or more
Source: HM Revenue & Customs 2014
The UK’s main corporate tax rate is competitive against other major European markets.
Country
France Germany Spain Italy Netherlands
UK
Czech Republic
Main corporate tax rates
33.33% 33% 30% 27.5% 25%
21%
19%
Source: Deloitte, 2014, UKTI Tax Information Sheet
The main rate of corporation tax will be reduced by an additional 1 percent in April 2015, so it reaches 20 per cent, the joint lowest level in the G20. 9
UK Government Support for
R&D
Patent Box
Patent Box enables companies to apply a lower rate of Corporation Tax to profits earned from its patented inventions You can benefit from the Patent Box if your company owns or exclusively licenses-in patents granted by the UK Intellectual Property Office, the European Patent Office, and the Patent Offices of certain other European countries Example of Patent Box reduction:
FY 2014 Profit Corp tax rate Patent Box
£1,000 21% 10%
Patent Box Patent Box tax
60% £60
Non Patent Box Non Patent Box tax Total Tax Effective rate
40% £84 £144 14.4% 10
UK Government Support for
R&D
R&D Tax Credits
▪ There are two schemes for claiming relief, depending on the size of the company or organization: –
The Small or Medium-sized Enterprise
(SME)
Scheme
: tax relief on R&D costs is 225% for each £100 of qualifying costs, the income on which Corporation Tax is paid is reduced by an additional £125 on top of the £100 spent –
The Large Company Scheme
: tax relief on R&D costs is 130% for each £100 of qualifying costs, the income on which Corporation Tax is paid is reduced by an additional £30 on top of the £100 spent
Source: UKTI, 2013
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UK opportunities in the Automotive industry
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The UK A The UK Automotive sector is
world
one of t
The motor industry in the UK has a strong future and is at the heart of the low carbon agenda
UK is home to… …seven volume car manufacturers …eight Formula One teams (supported by more than 300 companies, employing nearly 50,000 people in motorsport valley) …six commercial vehicle manufacturers …11 bus and coach manufacturers …more than 10 niche and specialist vehicle manufacturers
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Source: www.smmt.co.uk/industry-topics/uk-automotive-sector
The UK motorsport sector is a global leader, thanks to its dominant role in both managing & serving the Formula 1 and other racing series The Mercedes F1 team are located in Brackley, Northamptonshire The Force India F1 team are located at Silverstone, Northamptonshire The Marussia F1 team are located in Banbury, Oxfordshire The Caterham F1team are located in Hingham, Norfolk The Lotus-Renault F1 team are located in Enstone, Oxfordshire The Williams F1 team are located in Grove, Oxfordshire 15 The Red Bull Racing team are located in Milton Keynes, Buckinghamshire The McLaren F1 team are located in Woking, Surrey
The UK Government is committed to the automotive industry
Promotes sustainable programmes Provides incentives Provides valuable network
16 Low Carbon Vehicle Procurement Niche Vehicle R&D Low Carbon Vehicle Innovation Low carbon technology funding R&D and tax credits Advanced Manufacturing Supply Chain Initiative High Value Manufacturing Catapult Technology Strategy Board The Automotive Council Industry associations, e.g. Society of Motor Manufacturers and Traders (SMMT), MIA, Automotive Distribution Federation (ADF) Knowledge Transfer Networks
UK opportunities in the Aerospace sector
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UK offers vast market opportunities for the Aerospace Sector
UK has a world beating aerospace industry, second only to the United States
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The Aerospace Industry enjoys a government commitment to strengthen the UK’s competitiveness in the global market • •
UK Government supports UK-based aerospace projects by providing a repayable launch investment Nearly £1.9 billion has been invested over the last 25 years
• – –
Government organisations provides attractive grants, e.g. TSB’s £5m highly innovative technology enablers for aerospace competition EPSRC £1m fund to undertake R&D focusing National Aerospace Technology Strategy
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Government actively represents and supports UK-based companies overseas There is continuous dialogue between Government & aerospace business leaders & supply chain (e.g. The Aerospace Business Leaders Group)
UK opportunities in the ICT sector
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How does UK ICT market make the headlines?
MARKET UK is Europe’s leading market for software and IT services Market value of £58 bn pa UK has 52m internet users and over 228,000 online retail businesses UK share of online retail is 12%, considerably higher than any other European market & user online retail spend is highest in Europe ( €1333/pa) M-Commerce is
projected
to increase by 53% this year generating > £4.5 bn
Most significant market in Europe, early adopters, moving from online to mobile
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There are 9 major ICT & Creative Industries Clusters in the UK ▪ Tech City (London) - digital, creative & tech ▪ Cambridge – hardware, networks, digital health ▪ Brighton - gaming, animation, apps ▪ Thames Valley - software ▪ Bristol - animation ▪ Manchester/Liverpool - media, animation, apps ▪ Glasgow/Edinburgh - software, gaming ▪ Belfast – security, mobile, software ▪ Birmingham - software, serious gaming 22
Tech City represents the Digital Capital of Europe ▪ Fast growing cluster of >1300 technology, digital and creative companies in East London ▪ Tech City is not a single building or technology park but a community ▪ Major companies committed to Tech City: ▪ A magnet for entrepreneurs, corporates, venture capital and talent 23
Belfast in the Northern Ireland is another UK destination for ICT growing business
Strengths:
cyber security, software development & integration, mobile, telecoms
Key companies:
BT, Openwave, BroadSoft, IBM, Seagate, Aepona (Intel), Asidua
Talent: Queens
U.Belfast, ECIT-CSIT, U.Ulster, Virtual Worlds-Serious Gaming
Added values:
Propel (entrepreneurs), Investment funds, NI Science Park, low latency 24
There is a wide range of funding opportunities for the ICT companies based in the UK ▪ ▪ ▪ ▪ ▪
Technology Strategy Board
- Government funded body to drive innovation and technology development within the UK – Funding for technology that is closest to market – Matched (typically 50%) funding basis ▪
IC Tomorrow
- stimulates innovation & economic growth in the digital sector by supporting SMEs and early stage entrepreneurs
Catapults
services - Physical locations to help businesses transform ideas into new products & – Connected digital economy, Future cities, Transport systems…
Smart awards
- Proof of concept/market/prototype grants
Knowledge Transfer Partnerships
- support university/SME collaborations
Knowledge Transfer Networks
- events, funding & networking 25
UK opportunities for start-ups
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UK is very committed to supporting start-ups ▪ UK has well-developed accelerator programmes (Seedcamp, Ignite 100, Tech Stars, Entrepreneurial Spark, Entrepreneur First, Healthbox, Wayra….) ▪ Strongest VC environment outside of the US ▪ Vibrant Business Angel community ▪ Fast growing start-up clusters (e.g. Tech City) ▪ Dedicated incubators & co-working spaces for start-ups in key clusters e.g. Ideaspace (Cambridge), Innovation Warehouse (London), Level 39 (Canary Wharf) 27
Working with UKTI
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UK Trade & Investment can help you reach your global growth objectives
We build relationships in-market We provide advice, intelligence and support We bring in specialists, advisors and delivery partners in the UK Our services are free and confidential
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With Local Enterprise Partners and Devolved Administrators UKTI offers a broad partner support network for the investors
UK Trade & Investment Local UK
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Investment Services Team Local Enterprise Partners & DA‘s On the target location in the UK, Investment Services Team (IST), together with LEPs and Devolved Administrations (DA‘s) will support the new investor