Accessing a grant can provide a valuable boost to your business without the need to repay the funds. Grants are often available to support specific activities such as innovation, training, expansion, sustainability improvements, or regional development. However, finding and securing the right grant requires careful planning.
Grants are non-repayable funds provided by governments, public bodies, or private organisations to support particular business activities. Unlike loans or investment finance, grants do not need to be repaid — making them highly attractive to start-ups and growing companies.
Grants typically support objectives such as:
Innovation and research
Skills and workforce development
Exporting and international growth
Environmental sustainability
Local or regional development
Each grant has its own eligibility criteria, funding rules, and reporting requirements.
Business grants can be provided through various sources, including:
National, regional, or local government agencies often offer grant schemes to support:
Job creation
Technology adoption
Regional economic development
Green and low-carbon initiatives
Industry organisations may offer targeted funding to support:
Sectoral innovation
Skills training and apprenticeships
Collaborative research
Charitable trusts, foundations, and private funds may support businesses whose activities align with specific social, environmental or economic objectives.
Each grant programme has specific conditions that applicants must meet. Common criteria include:
Business size (e.g. small or medium-sized enterprises)
Location (certain regions or areas may qualify)
Sector or industry focus
Project relevance to funding objectives
Evidence of financial health and viability
Understanding and meeting eligibility requirements is crucial before investing time in an application.
Typically, the grant process involves:
Identifying suitable schemes that align with your business goals
Reviewing eligibility criteria and application deadlines
Preparing a compelling application with project proposal and financials
Submitting required documentation such as business plans, forecasts, and supporting evidence
Responding to queries or follow-up requests from the grant provider
Meeting reporting or monitoring requirements once funding is awarded
Successful applications usually require clear demonstration of the benefits and impact of the proposed activity.
Support research, development and adoption of new technologies or processes.
Funding to upskill staff or develop workforce capabilities.
Support businesses expanding into international markets.
Funding for energy efficiency, low-carbon upgrades and sustainable practices.
Targeted support for businesses operating in specific regions or underserved areas.
Grant applications can be competitive and detailed. Common hurdles include:
Complex application forms
Demonstrating clear economic or social impact
Providing robust financial projections
Aligning project goals with funding criteria
Meeting strict deadlines
Professional support significantly improves the clarity and quality of applications.
Once a grant is awarded, businesses usually have ongoing obligations, such as:
Providing regular progress reports
Submitting financial documentation
Demonstrating outcomes against agreed objectives
Failure to comply with reporting requirements can lead to funding being withdrawn or clawed back.
Securing grant funding requires strategic insight and attention to detail. Applegrow can support you with:
Identifying appropriate grant opportunities
Assessing eligibility and preparing strong applications
Developing business cases and financial projections
Managing reporting and compliance requirements
Integrating grant funding within wider growth plans
Whether you are launching a new initiative or scaling existing operations, we can help you make the most of available funding support.
A capital gain arises when a chargeable asset is sold for more than its original cost. The gain is calculated as:
Sale proceeds (less selling costs)
minus
Purchase price (including acquisition costs)
CGT applies to assets such as shares, business assets, investment property, and certain personal possessions.
For the 2025/26 tax year, CGT rates depend on your total taxable income and gains:
18% on gains that fall within the basic rate income tax band
24% on gains above the basic rate band
These rates apply to most assets, subject to specific exceptions and reliefs.
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) can significantly reduce CGT on qualifying business disposals.
For 2025/26:
Qualifying gains are taxed at an effective rate of 14%
The lifetime limit for BADR is £1 million
The rate will increase to 18% from 2026/27
BADR may apply to:
The sale of a sole trade or partnership business
Shares in a personal trading company
Assets used in a business that has ceased within the last three years
Associated disposals (such as personally owned property used in a business) may also qualify, although restrictions can apply, particularly where rent has been charged.
To qualify for BADR on company shares:
You must have been an employee or director
You must hold at least 5% of ordinary share capital
You must hold at least 5% of voting rights
Additional distribution or proceeds tests must be met
The qualifying ownership period is two years leading up to the date of disposal.
Where a shareholder’s holding falls below 5% due to fundraising through new share issues, BADR may still be protected. An election can be made to crystallise the gain before dilution, with the option to defer tax until the shares are actually sold.
This area requires careful planning.
Investors’ Relief is designed for external investors in unlisted trading companies.
Key conditions include:
Shares must be newly issued for cash
The company must be unlisted and trading
Shares must be held for at least three years
The CGT rate under Investors’ Relief is:
14% for 2025/26
Increasing to 18% from 2026/27
The lifetime limit for IR is £1 million.
Each individual can realise gains up to the £3,000 annual exemption (2025/26) without paying CGT. Couples should consider planning disposals jointly to maximise the use of both exemptions.
Shares of the same class in the same company are treated as one pooled asset. However:
Same-day transactions are matched first
Purchases within 30 days after disposal are matched next
Remaining shares are matched from the pooled holding
These rules are designed to prevent short-term tax planning.
Additional reliefs may include:
Private Residence Relief
Business Asset Rollover Relief
Gift Holdover Relief
Offset of carried-forward capital losses
Some disposals, such as those involving EIS, VCTs, or share exchanges, can be complex and should be reviewed in advance.
Capital gains tax planning should always be done before an asset is sold. Early advice can significantly reduce tax exposure and avoid unexpected liabilities.
Applegrow can help you:
Identify available CGT reliefs
Plan business or investment disposals
Structure transactions tax-efficiently
Ensure compliance with current legislation
Contact Applegrow Financial Advisors today to explore grant opportunities and receive expert help with the application process.
