Foreign direct investment (FDI) into the UK has increased year-on-year for a decade to stand at over £2 billion in 2021.
With a reputation for enabling organisations to do business quickly, a robust legal framework and few restrictions on overseas investment, the UK has long been a prime destination for overseas investors.
But various economic factors have hindered the willingness of individuals and businesses to invest in the UK. Brexit created a degree of uncertainty by removing the UK’s easy access to the EU’s single market. High inflation, rising interest rates and further political uncertainty have also acted as deterrents, often making it more expensive to do business.
Despite this, the outlook remains largely positive. Overseas mergers and acquisitions into and out of UK entities was stronger in 2022 than in both 2021 and 2020. This suggests that post-pandemic FDI activity is proving resilient.
Thinking of investing in the UK? We can help
As experts in cross-border law, we understand the key aspects of UK law that will impact you when you make an investment.
We can guide you through:
- Freeports and investment zones - whether you are an established business in the UK or overseas, understanding the nuances of Freeports and how to get involved can unlock new avenues for growth and investment
- Possible entry strategies – including advice around ensuring robust contracts with important agencies or securing valuable joint venture agreements. Finding an acquisition target and helping you through the due diligence process
- Investment restrictions & corporate structuring – we can help you navigate the rules and best practices around foreign ownership and minimum capital requirements, and identify whether any mandatory or voluntary notification is needed under the National Security and Investment Bill. When it comes to the corporate structure, we can also advise on whether a UK Establishment or a UK-incorporated company would be better suited.
- People and Immigration – our specialists will guide you through complex visa requirements and restrictions when you look to enter the UK as an individual to do business. We’ll also advise any overseas business on sending a representative to the UK and will let you know if any sponsorship licences are necessary
- Tax – we’ll advise you on your tax liabilities in the UK, including corporation tax, stamp duty land tax when buying real estate, VAT when supplying goods and PAYE when it comes to hiring people and talent. We’ll also identify relevant tax incentives, such as the business rate relief available to organisations relocating to an enterprise zone or freeport
- Real estate – we’ll help you buy or rent personal or business premises in the UK, advising you on the formalities that apply when an overseas company registers a legal title to a property with HM Land Registry
- Ongoing legal issues as you start to establish your brand and business in the UK - including banking & finance, restructuring, employment and pensions, intellectual property, data protection, dispute resolution, private wealth and more.
Get FDI expertise by contacting our team today.
UK Attractiveness Index Autumn/Winter 2024
Our new UK Attractiveness Index revisits previous findings and provides new perspectives, crucial for conducting business in a competitive landscape.
In partnership with Cebr, we’ve updated the Gross Value Added (GVA) predictions for 50 leading locations across the UK. Incorporating the latest statistics from the Office for National Statistics and the Department for Business and Trade, our analysis is grounded in the most current data available.
Read The Report
UK National Security Investment Regime
The UK National Security and Investment (NSI) regime came into full force on Tuesday 4 January 2022. In its most simple form, it’s designed to safeguard national security interests in the UK.
In following Q&A, we explore the specifics of the NSI regime, its impact on different types of transactions, the sectors it covers, the potential consequences of non-compliance, and how Irwin Mitchell can assist businesses in navigating through this complex regulatory landscape.
Read The Q&A
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