Financial Statements of UK Government Investments Limited
         Statement of comprehensive net expenditure for the year ended 31 March 2022
                                                              Notes   2021-22  2020-21
                                                                       £000     £000
         Staff costs                                            3     16,897    14,155
         Operational costs                                      4      5,533    4,073
         Total operating expenditure                                  22,430    18,228
         Revenue                                                5     (1,441)  (1,177)
         Net operating expenditure before financing                   20,989    17,051
         Finance income and expenditure                         6       (9)      53
         Net operating expenditure before tax                         20,980    17,104
         Taxation                                                       (8)       3
         Net operating expenditure after tax                          20,972    17,107
         The notes are an integral part of these financial statements. All activities are classified as 
         continuing. There has been no other comprehensive income or expenditure in the current year
         Statement of financial position as at 31 March 2022
                                                              Notes  31-Mar-22 31-Mar-21
                                                                       £000     £000
         Non current assets
         Property, plant and equipment                          8      1,271    4,168
         Total non current assets                                      1271     4,168
         Current assets
         Cash and cash equivalents                              9      1,538     416
         Trade and other receivables                           10      503       778
         Total current assets                                          2,041    1,194
         Total assets                                                  3,312    5,362
         Current liabilities
         Trade and other payables                              11     (5,256)  (5,250)
         Total current liabilities                                    (5,256)  (5,250)
         Total assets less current liabilities                        (1,944)    112
         Non current liabilities 
         Trade and payables due after one year                 11     (1,073)  (3,657)
         Total non current liabilities                                (1,073)  (3,657)
         Assets less liabilities                                      (3,017)  (3,545)
         Taxpayers’ equity
         General fund                                                  3,017    3,545
         Total taxpayers’ equity                                       3,017    3,545
         The notes are an integral part of these financial statements. These financial statements were 
         approved by the Board of Directors on 18 July 2022 and were signed on its behalf by
          Charles Donald
          Chief Executive
          UKGI company number 09774296
          Statement of cash flows for the year ended 31 March 2022
                                                                  Notes     2021-22   2020-21
                                                                             £000      £000
          Cash flows from operating activities
          Net operating costs                                               (20,989)  (17,051)
          Depreciation                                                        764       294
          Decrease/(Increase) in trade and other receivables         10       275       134
          (Decrease)/Increase in trade and other payables            11     (2,578)    5,482
          Corporation tax                                                      8         (3)
          Net cash outflow from operating activities                        (22,520)  (11,144)
          Cash flows from investing activities
          Purchase of non-financial assets                                   (744)     (4,462)
          Revaluation of right-of-use assets                                 3,280       0
          Gain on revaluation of non-financial assets                         23         0
          Net cash outflow from investing activities                         2,559     (4,462)
          Cash flows from financing activities
          Grant-in-Aid from HM Treasury                                      21,500    15,750
          Payment of interest and other finance expenditure          6        (14)      (53)
          Repayment of lease liability                                       (403)      (248)
          Intercompany account movements                                                (12)
          Net financing                                                      21,083    15,437
          Net increase/(decrease) in cash and cash equivalents               1,122     (169)
          in the period
          Cash and cash equivalents at the beginning of the period            416       585
          Cash and cash equivalents at the end of the period                 1,538      416
          The notes are an integral part of these financial statements
             Statement of changes in taxpayers’ equity for the year ended 31 March 2022
                                                                            General 
                                                                           Reserve
                                                                             £000
          Balance at 1 April 2020                                           (2,176)
          Grant-in-Aid from HM Treasury                                     15,750
          Comprehensive expenditure for the year after tax and transfer     (17,107)
          Intercompany adjustments                                            (12)
          Balance at 31 March 2021                                          (3,545)
          Grant-in-Aid from HM Treasury                                      21,500
          Comprehensive expenditure for the year                            (20,972)
          Balance at 31 March 2022                                          (3,017)
     Notes to the Financial Statements
     1. Reporting Entity
     UK Government Investments Limited (the Company) is a Company limited by shares 
     incorporated in the United Kingdom. The address of the Company’s registered office is 27-28 
     Eastcastle Street, London W1W 8DH.
     2. Statement of Accounting Policies
     The Financial Statements have been prepared in accordance with international accounting 
     standards in conformity with the requirements of the Companies Act 2006 and, as appropriate, 
     the Government Financial Reporting Manual (‘FReM’) and other guidance issued by HM 
     Treasury where the disclosure requirements of these go beyond the Companies Act 2006. The 
     financial statements have been prepared and approved by the Directors in accordance with 
     International Financial Reporting Standards and International Financial Reporting Interpretations 
     Committee interpretation.
     (a) Accounting Convention
     These accounts have been  prepared on an accruals basis under the historical cost convention.
     (b) Impact of new standards
     UKGI has considered the newly issued accounting standards, interpretations and amendments to 
     published standards that are not yet effective. None are expected to have an impact on UKGI’s 
     financial statements.
     (c) Going Concern
     It has been considered appropriate to adopt a going concern basis for the preparation of these 
     financial statements as UKGI has in place an agreed budget settlement with HM Treasury, 
     comprising a commitment to financial year 2022-2023. UKGI’s status will be reviewed 
     periodically. The going concern disclosures on page 44 of the Annual Report detail in full the 
     basis on which the Directors consider it appropriate to prepare these Accounts on a going 
     concern basis.
     (d) Revenue
     Revenue is recognised in the statement of comprehensive expenditure on an accruals basis.
     (e) Financing
     The company is financed via Grant-in-Aid from HMT. The Grant-in-Aid is credited to the general 
     fund in the year in which it is received. The total Grant-in-Aid received by the company from HMT 
     in the financial year 2021-22 was £21.5m (2020-21 £15.8m).
     (f) Pensions
     The provisions of the Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and 
     Other Pension Scheme (CSOPS), are described in the Remuneration Committee Report, and 
     cover staff transferred from the Civil Service and who are subject to TUPE. The defined benefit 
     schemes within the PCSPS and CSOPS are unfunded and contributory. UKGI recognises as a 
     cost the monthly charges made by the PCSPS and CSOPS to contribute to the schemes. 
     Employees are entitled to enroll into UKGI’s group stakeholder pension plan, a defined 
     contribution scheme administered by Fidelity. Contributions are charged in the Statement of 
     Comprehensive Net Expenditure as they become payable in accordance with the rules of the 
     scheme.
     (g) Employee benefits
     The Company has accrued for the cost of the outstanding employee paid holiday entitlement. 
     The accrual is based on salary, Employer’s National Insurance Contributions and pension 
     contributions.
         (h) Financial Instruments
         UKGI is not exposed to significant financial risk factors arising from financial instruments. 
         Financial assets and liabilities are generated by day-to-day operation activities rather than being 
         held to change the risks facing UKGI in undertaking its activities. UKGI’s financial assets are: 
         trade receivables due from related parties and other trade receivables. UKGI‘s financial liabilities 
         are: trade and other payables due to related parties, other trade payables, lease liabilities, 
         taxation and social security. The carrying values of short-term financial assets and liabilities (at 
         amortised cost) are not considered different from fair value.
         i) Market risk
         Market risk is the possibility that financial loss might arise as a result of changes in such 
         measures as interest rates and stock market movements. The vast majority of UKGI ‘s 
         transactions are undertaken in sterling and so its exposure to foreign exchange risk is minimal. 
         UKGI’s income and operating cash flows are substantially independent of changes in market 
         interest rates.
         ii) Credit risk
         Credit risk is the possibility that other parties might fail to pay amounts due to UKGI. Credit risk 
         arises from deposits with banks as well as credit exposures to HM Treasury and other debtors. 
         The credit risk exposure to HM Treasury is considered negligible; UKGI ‘s operating costs are 
         recovered from HM Treasury, which is financed by resources voted by Parliament. Surplus 
         operating cash is only held within the Government Banking Service.
         iii) Liquidity risk
         Liquidity risk is the possibility that UKGI might not have funds available to meet its commitments 
         to make payments; this is managed through prudent cash forecasting and is considered 
         negligible as expenses are recouped through grant-in-aid.
         (i) Tax
         Value Added Tax – In general input tax on purchases is not recoverable. Irrecoverable tax is 
         charged to the relevant expenditure category or included in the capitalised purchase of non-
         current assets. Where output VAT is charged, or input VAT is recoverable, amounts are stated 
         net of VAT. Corporation Tax – UKGI is liable to pay corporation tax where taxable income 
         exceeds the costs associated with that income. Payment of £5.6k was made to HMRC in relation 
         to the period 01 April 2019 to 31st March 2021 (2019-20 £4.8k).
         (j) Non-current assets and depreciation 
         The value of the Company’s non-current assets is stated at cost less accumulated depreciation 
         and impairment losses. Only those assets costing more than £5,000 and having an economic 
         value to the Company beyond the year in which they were bought are capitalised. Where parts of 
         an item have different useful lives, they are accounted for as separate assets. Depreciation is 
         applied on a straight-line basis over the estimated useful economic lives of assets. Depreciation 
         methods, useful lives and residual values of non-current assets are reviewed at least at each 
         balance sheet date. Donated assets are recorded at nil value. Estimated useful economic lives of 
         non-current assets
         Asset type                                                Estimated Useful Life
         Information Technology equipment                       Three to five years
         Office furniture and fittings                          Ten years
         Leasehold improvements                                 The remaining period of the lease
         Plant & Machinery                                      Over ten to fifteen years
         Computer software                                      Over three years
         (k) Leases