Startup grants in the UK in 2026: what is open now that Smart grants are closed

Short answer: Innovate UK's open-to-any-idea Smart grants are closed to new applications, so in 2026 UK startup grants come from themed Innovate UK competitions with fixed deadlines. Open right now for UK SMEs: Frontier AI: SME Champions (closes 11 November 2026), Efficient, Structured and Controllable AI (18 November), Engineering Biology Investor Partnerships (grants of £250,000 to £2 million, 2 December), Battery Innovation feasibility studies (2 December) and BridgeAI Deployment Catalyst (8 December). If you work with a company abroad, there are also bilateral grants with Germany, Singapore, Japan and the Netherlands. Grants cover a share of costs, usually up to 70% for micro and small firms, so you fund the rest. Any company doing R&D can also claim R&D tax relief.

The Grant Index lists 10 government programs specific to the UK, plus European programs that UK companies can join, each checked against its official page (the date is in the "Verified" column). This guide covers grants and tax reliefs only: nothing here is a loan, and none of the grants takes equity. It goes from Innovate UK's open competitions to international partner grants, EU calls and tax reliefs, and ends with the rules that most often get applications rejected.

1. What happened to Smart grants

For years, Smart was the default answer to "startup grants UK": any sector, any idea, as long as a business led an innovative project. UKRI now says Smart grants "are now closed for new applications as funding is being aligned to Innovate UK's new strategic direction", and no reopening date has been given. Many lists of UK startup grants still point to Smart, so check the date on anything you read.

What replaced it is a set of themed competitions on the Innovation Funding Service. Each one has its own scope, project size, closing date and partner rules. The question is no longer "is my idea innovative?" but "does a competition that is open right now match what I am building?"

2. Innovate UK competitions open to SMEs now

These are the competitions we track that a UK startup can lead. The values are maximum grants; the program pages show how each amount is calculated.

The two AI competitions close soon. Frontier AI closes on 11 November and Efficient AI on 18 November 2026, both at 11:00 UK time. Both are very competitive: the competition briefs put historical success rates at about 2% and 4%. If your project fits, a small, sharply defined technical plan beats a broad one.

Investor Partnerships work differently. For Engineering Biology, you can apply before talking to an investor, but you only receive the grant if an investor from Innovate UK's pool leads an aligned round (new shares or convertible debt) worth at least twice the grant. It suits companies that are already raising.

3. International partner grants

Bilateral competitions fund the UK side of a joint project, while your foreign partner applies to its own national agency at the same time. You need the partner before you apply, and finding one is usually the slowest step.

Both sides are assessed, and a project usually goes ahead only if both national agencies fund it. Agree on scope, budget split and intellectual property with your partner early, because both applications must describe the same project.

4. European calls open to UK companies

The UK is associated to Horizon Europe, and several EU-funded calls name the UK as eligible. These three are open now and are small enough to suit early-stage teams.

For compute rather than cash, UpCloud gives startups registered in the EU, EEA, UK, Ukraine or Switzerland cloud credits; see our cloud credits guide and innovation vouchers guide for more European options.

5. Tax reliefs: the money most startups leave unclaimed

R&D tax relief. The merged scheme gives a 20% taxable credit on qualifying R&D spend. Loss-making SMEs that spend at least 30% of their total expenditure on R&D can use ERIS instead: a 186% total deduction plus a payable credit of up to 14.5% of the surrenderable loss. Check whether you must notify HMRC before claiming, and note that some overseas costs are restricted.

SEIS is not a grant, but it helps you raise. The Seed Enterprise Investment Scheme gives tax reliefs to individual investors who buy new shares in your company. According to HMRC, a company can raise a maximum of £250,000 through SEIS, must have gross assets of no more than £350,000 and fewer than 25 full-time equivalent employees when the shares are issued, must carry out a new qualifying trade, and must spend the money within 3 years. You cannot use SEIS if you have already taken EIS or venture capital trust money.

6. Which program fits your stage

1. Idea, no company yet: EIT Culture & Creativity Spark if your concept is in creative tech; you must incorporate by month 3. Innovate UK competitions require a registered business.
2. Early-stage AI company: Frontier AI or Efficient AI for research-heavy work; BridgeAI once your product is at TRL 5 to 6 and a larger company will deploy it.
3. Deep tech raising a round: Engineering Biology Investor Partnerships, and SEIS for your first individual investors.
4. Already working with a partner abroad: the Germany, Singapore, Japan or Netherlands bilateral competitions.
5. Hardware, climate or agriculture: Battery Innovation feasibility studies or NOSTRADAMUS.
6. Any company doing R&D: claim R&D tax relief on the same work, whether or not you win a grant.

7. Rules that sink applications

• Assuming the grant covers everything. Most competitions fund up to 70% of eligible costs for micro and small firms (60% for medium, 50% for large), and Engineering Biology only 45%. You must show how you will pay the rest.
• Subcontractors. Frontier AI and Efficient AI allow none. Where they are allowed, overseas subcontractors need evidence that UK suppliers could not do the work, and a cheaper price is not accepted as a reason.
• Wrong strand or scope. Battery Innovation has two strands, and an application in the wrong one is not assessed or transferred.
• Project size and length. Every competition sets minimum and maximum grant requests and durations. If you fall outside them, some briefs require you to email Innovate UK for approval at least 10 working days before the close.
• Missing partner applications. Bilateral grants need your partner's matching application in its own country, and Globalstars Japan needs the Eureka form as an appendix.
• The deadline is 11:00, not midnight. Innovate UK competitions close at 11:00 UK time on the closing date, so do not plan to submit in the evening.

Not sure which you qualify for? The eligibility checker asks for your country, stage, company age, funding and backing once and gives every program a verdict. You can also see every program for UK startups or browse all government programs.

FAQ

Are Innovate UK Smart grants still open?

No. UKRI says Smart grants are closed for new applications while funding is aligned to Innovate UK's new strategic direction, and no reopening date has been announced. Innovate UK now funds startups through themed competitions such as Frontier AI, BridgeAI and the Investor Partnerships.

How much of my costs will an Innovate UK grant cover?

For feasibility studies and industrial research, usually up to 70% of eligible costs for micro and small businesses, 60% for medium-sized and 50% for large ones. Investor Partnerships competitions pay less: Engineering Biology covers up to 45% for micro and small firms and 35% for medium-sized ones.

Can a pre-revenue startup get a grant in the UK?

Yes. Innovate UK competitions judge the project, not your revenue, but you need a UK-registered business and the means to fund your share of costs. Frontier AI, for example, funds 1 to 3 month projects with total costs of £150,000 to £250,000. EIT Culture & Creativity Spark even accepts teams without a company, which must register one by month 3.

Is R&D tax relief worth claiming for a startup?

Usually, yes. The merged scheme gives a 20% taxable credit on qualifying R&D. Loss-making SMEs whose R&D is at least 30% of total spending can use ERIS: a 186% total deduction plus a payable credit of up to 14.5% of the surrenderable loss, which is cash even before you have profits.

Can UK startups still apply for EU grants?

Yes, for many calls. The UK is associated to Horizon Europe, and calls such as NOSTRADAMUS (up to €50,000) and EIT Culture & Creativity Spark (up to €30,000) accept UK applicants, as does Eureka's Innowwide market feasibility grant (€60,000). Always check the eligible-country list in each call's documents.

Do I need a foreign partner for the bilateral competitions?

Yes. The UK-Germany, UK-Singapore, UK-Netherlands and Globalstars Japan competitions fund only the UK side of a joint project. Your partner applies to its own national agency (ZIM, Enterprise Singapore, RVO or Japan's national funding body) at the same time, and both sides normally need to be approved.

Program terms change often. Every program page linked above shows its official source and the date we last verified it; confirm on the provider's page before you apply. Spotted something out of date? Report a correction.

Related guides

• Innovation vouchers in Europe (2026): amounts and rules compared
• Startup grants in Germany (2026): EXIST, state programs and EU grants compared
• Startup grants in Saudi Arabia (2026): MVPLab, RDIA, Monsha'at and more
• Startup grants in MENA (2026): Egypt, Morocco, Qatar, Bahrain, UAE and more

Browse the full lists: Startup programs in the United Kingdom · Government grants for startups