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27 Jul 2026
Insight
On 14 July 2026, the UK Cabinet Office published the fifth Annual Report on the National Security and Investment Act 2021, covering the review of transactions and investments on national security grounds during the period 1 April 2025 to 31 March 2026.
The Investment Security Unit received 1,324 notifications during the reporting period - a 15% increase year-on-year and 46% higher than the 2023/24 period, with 95.6% of reviewed acquisitions cleared with no further action. Yet the regime's reach continues to grow, with investments originating from China subject to particular scrutiny and the defence sector continuing to account for the largest proportion of call-in notices.
With proposed new legislation expanding the sectors covered expected to come into force when the parliamentary timetable allows, a continued increase in notifications in the coming years seems likely.
Our team examines the key trends and statistics from this year's Report, what they mean for investors and acquirers, and how the UK regime compares with foreign direct investment regimes across the EU and the US.
Key contacts
Veronica Roberts
Partner, Head of Competition/Antitrust, Regulation and Trade, UK, London
Victoria Oates
Knowledge Lawyer, London
Max Kaufman
Senior Associate, London
Legal Notice
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills Kramer 2026