Introduction to UK Trade & Investment

for
Kerry Appleton, Consul and Head of Trade & Investment and
Lynn McCloghry, Business Development
The British Consulate-General
New York
November, 2005
US Network
 UK Regional
Representation
12 Regional
Development
Agencies
- Operating under
the umbrella body
of UK Trade &
Investment
 The EU - single market
450m consumers
New EU 10
EU 15 Cyprus
Austria Czech Republic
Belgium Estonia
Denmark Hungary
Finland Latvia
France Lithuania
Germany Malta
Greece Poland
Ireland Slovakia
Italy Slovenia
Luxembourg
The Netherlands Candidate
Portugal Bulgaria
Spain Croatia
Sweden Romania
United Kingdom Turkey
Application
Pending
Former
Yugoslav
Republic of
Macedonia
 Single EU Market
• The Single Market principle of mutual recognition of
standards means that British manufacturers can sell their
products all over the EU without expensive re-testing in
every country.
• The Single Market has led to the elimination of some 10
million customs forms for UK firms alone, saving UK
business an estimated £135 million per year.
• Membership of the EU has made Britain a magnet for
inward investment the UK attracts 40% of the EU's inward
investment from the USA and Asia, which are using the UK
as a gateway to the Single Market.
 How We Assist -
Investment
Identifying location
Determining strategy Identifying the people
• Location
- customers, skills pool • Key executives
• Business rationale • Skilled workforce /
- infrastructure
• Channels & partnering graduate population
- growth potential
• Funding • Property • Visas and work permits
• Corporate structure • Grants and incentives • Salary & benefits
- taxation, transfer pricing • Personal tax / NI
- branch v subsidiary
Starting the business
Supporting the business
• Outsourcing • Company registration
•Accounting, legal services •Intellectual property
•Consultancy •Licences
•Recruitment services •Data Protection
•Support from RDA’s •Banking, forex
•Support from UK Trade & Investment •VAT, Customs
 How We Assist -
Continuum of Services
• Good Idea
Global
• Good person
Entrepreneur
• Serial Entrepreneur
Program
• Technology Transfer
• Academic - Corporate Links
S&T
• Scoping and exploiting commercial opportunities
• Key Industry Trends
Sector • Centers of Excellence
Specialist • Influencing UK gov on business friendly policies
• Joint Venture
Global • Strategic Alliance
Partnerships • Tech Licensing
• Value Added Reseller
Direct • New investment
Investment • Aftercare and Expansion
 Trade Services
We provide services to US and UK companies
US Companies UK Companies
• Company visits to gather • Provide up-to-date
market intelligence, and commercial intelligence and
identify needs/opportunities bespoke market information
• Visit and exhibit at local reports
trade fairs • US trade fairs and co-
• Co-ordinate inward missions ordinate outward missions
to UK trade shows and • Provide commercial publicity
events • Offer the sales lead service
• Offer a sales lead service
 R&D Tax Credit
• Two schemes depending on size of company: large vs.
small/medium,which is:
– fewer than 250 employees
– with an annual turnover not exceeding 40 million Euros or a balance sheet
total not exceeding 27 million Euros
– less than 25% of its share capital or voting rights held by companies which
fall outside the definition of small or medium sized
• Small/Medium companies can claim a tax deduction for
150% of their R&D expenditure
• Large companies an claim 125% of their R&D
expenditure
• Small/Medium companies which have tax losses can
claim an R&D cash repayment of up to £24 for every
£100 spent on R&D
 National Financial
Assistance Programs
• Selective Finance for Investment
– Project must be undertaken within one of England’s Assisted
Areas (Tier 1 or Tier 2)
– Applicants must demonstrate that a grant is necessary to
enable the project to go ahead as planned
– The project must create new jobs or safeguard existing
employment if you are seeking support of £100,000 or more
– Typical assistance levels based on the project’s total eligible
capital expenditure:
• Tier 1 - 35%
• Tier 2 - 10 - 20%
• Training Assistance
– Assistance is available for recruitment and training through
local Learning and Skills Councils
 Dept of Trade & Industry
Business Support
! In April 2004, the UK launched a web-based Business
Support Directory providing a comprehensive guide to a
range of Government business support products.
– Grant for research and development (launched June 2003)
– Grant for investigating an innovative idea (launched June 2003)
– Knowledge transfer partnerships (launched June 2003)
– Small firms loan guarantee (launched April 2003)
– Support to disseminate new and existing best practice to companies
– Support for companies to implement best practice activities
– Support for collaborative research and development
 Software - Why Think UK?
• The largest proportion of US and Japanese R&D facilities in
Europe are based in the UK.
• The UK is the leading location in Europe for software
investment.
• The UK’s deregulated telecoms regime and leading-edge
technology have attracted major telecoms operations, service
providers, and manufacturers.
• The maturity of the electronics industry has led to the
development of a number of centres of excellence and
innovation.
• The UK has Europe’s largest semiconductor design industry,
half the market in integrated circuit applications design and
over a third of all design houses in Europe.
 Contacts
Kerry Appleton
Consul and Head of Trade & Investment
UK Trade & Investment
British Consulate-General
845 Third Avenue
New York, NY 10022
Tel: 212-745-0427
Email: kerry.appleton@fco.gov.uk
Lynn McCloghry
Business Development Associate
UK Trade & Investment
British Consulate-General
845 Third Avenue
New York, NY 10022
Tel: 212-745-0418
Email: lynn.mccloghry@fco.gov.uk