UK Space Compliance: The Space Industry Act & Outer Space Act

The United Kingdom runs one of the most developed national space regulatory regimes in the world, and since Brexit it operates entirely outside the EU Space Act. Any organisation that launches from the UK, operates a spaceport, or is a UK entity operating a satellite anywhere in the world needs to understand two pieces of primary legislation and the regulators that enforce them. This guide explains the full picture: which law applies to you, who licenses what, and how liability and insurance work in practice.

Executive Summary

UK space activity is governed by two parallel statutes. The split confuses many operators, so get it right first:

Key facts:

• The Outer Space Act 1986 (OSA) regulates UK persons who operate a space object, or who procure the launch of one, anywhere in the world. The regulator is the UK Space Agency (UKSA).

• The Space Industry Act 2018 (SIA) regulates spaceflight activities carried out from the UK — launch, return, operating a spaceport, and range control — brought into force by the Space Industry Regulations 2021. The regulator is the Civil Aviation Authority (CAA), supported by UKSA.

• Both regimes require insurance and impose a liability and indemnity relationship with government, but the SIA introduced a modelled, mission-specific liability cap rather than a single fixed figure.

• The UK is not within the scope of the EU Space Act. UK operators selling services into the EU may still face EU requirements through their customers or their own EU establishment.

Part 1: Which Law Applies to You?

The single most important question in UK space compliance is jurisdictional: are you doing something from the UK, or are you a UK entity doing something abroad?

The Outer Space Act 1986 (OSA)

The OSA is the UK's implementation of its obligations under the Outer Space Treaty and the Liability Convention. It licenses UK nationals, UK-incorporated bodies, and Scottish/other UK persons who:

• launch or procure the launch of a space object, or

• operate a space object (for example, a satellite in orbit), or

• carry on any activity in outer space.

Crucially, the OSA bites wherever in the world the activity happens. A UK-incorporated satellite operator procuring a launch on a foreign rocket and operating the satellite from a foreign ground station still needs an OSA licence from UKSA.

The Space Industry Act 2018 (SIA)

The SIA was created to enable a domestic UK launch industry. It regulates spaceflight activities carried out from the United Kingdom, including vertical and horizontal launch, sub-orbital activity, return to Earth, and the infrastructure that supports them. It is administered primarily by the CAA. Where the OSA looks at who you are, the SIA looks at where the activity takes place.

The overlap

An organisation launching from a UK spaceport and operating the resulting satellite as a UK entity may touch both regimes. UKSA and the CAA coordinate so that operators are not double-regulated where avoidable, but you must map your activities against both statutes during scoping.

Part 2: The Licence Types

Under the Space Industry Act (CAA)

• Launch operator licence — to carry out launch or return of a spacecraft or carrier aircraft.

• Spaceport licence — to operate a site from which launches take place (vertical or horizontal).

• Range control licence — to provide range control services that keep the public and other airspace and sea users safe during operations.

• Return operator licence — for activities involving return to Earth.

• Orbital operator authorisation — for operating a spacecraft in orbit in connection with UK spaceflight activities.

Under the Outer Space Act (UKSA)

• A licence (or, for some lower-risk activities, a registration) to operate a space object or procure a launch as a UK person.

Part 3: Safety — the Heart of the SIA

The SIA regime is built around safety. An applicant for a launch or spaceport licence must produce a safety case demonstrating that risk to the uninvolved public is as low as reasonably practicable and within defined thresholds. The CAA assesses:

• Flight safety analysis — trajectory, debris footprint, and public risk modelling.

• Casualty expectation — quantified individual and collective risk to the public, assessed against published criteria.

• Security — protection of the spaceflight system from interference.

• Environmental assessment — the SIA requires an assessment of environmental effects as part of the licensing process.

Operators should expect an iterative, evidence-heavy dialogue with the regulator and should engage in pre-application consultation early.

Part 4: Liability and Insurance

This is where the UK regime is distinctive and where the most money is at stake.

The liability relationship

Under both statutes, the licensee indemnifies the UK government against claims brought against the UK as a "launching state" under the Liability Convention. Historically the OSA exposed operators to unlimited liability to government, which deterred investment. Reform addressed this:

• The government will normally cap an operator's liability to indemnify it, with the cap set by reference to the mission's modelled risk.

• Operators must hold third-party liability insurance covering claims by uninvolved parties.

Modelled insurance requirement

Rather than a single fixed sum for every mission, the SIA framework uses a modelled insurance requirement (MIR) — the required cover is calculated from the specific mission's risk profile. For in-orbit operation, a reference figure of around EUR 60 million of third-party cover has historically been used as a benchmark, but operators should confirm the current figure and methodology with the regulator for their mission class.

Practical takeaways

• Budget for liability insurance from day one; it materially affects mission economics.

• The liability cap is a government policy lever, not an automatic entitlement — confirm it in writing for your mission.

• Insurance must be maintained for the full licensed period, including end-of-life and disposal.

Part 5: Spaceports and the UK Launch Market

The UK has invested heavily in domestic launch capability, with spaceport sites developed in Cornwall (horizontal launch) and in Scotland (vertical launch, including SaxaVord and Sutherland). The first UK launch attempt in January 2023 did not reach orbit, underlining how demanding the safety and regulatory bar is. For launch providers, the spaceport's own licence and the operator's launch licence are separate instruments that must align.

Part 6: UK and the EU Space Act After Brexit

Because the UK is outside the EU, the EU Space Act does not apply to UK activities directly. However:

• A UK operator with an EU establishment or providing services into the EU may fall within EU scope through that footprint.

• NIS2 cybersecurity obligations can reach UK operators serving EU essential/important entities through the supply chain.

• Aligning early with EU standards is often commercially sensible because the EU is a major market and many technical standards (debris, cybersecurity) are converging internationally.

How Caelex Helps

Caelex maps your activities against the correct UK regime — OSA, SIA, or both — and against the EU Space Act and NIS2 where your footprint reaches the EU. The platform tracks licence conditions, insurance and liability obligations, supervision and reporting deadlines, and the evidence you need to keep a UK licence in good standing, so nothing falls between the UKSA and CAA processes.

Frequently Asked Questions

Do I need a licence if I only operate a satellite, not launch one? If you are a UK person operating a space object, yes — typically an Outer Space Act licence from UKSA, regardless of where the satellite was launched.

Who regulates UK launch — the CAA or UKSA? Launch and spaceport activities from the UK are regulated by the CAA under the Space Industry Act. The UK Space Agency regulates UK operators under the Outer Space Act and supports the wider framework.

Is my liability to the UK government unlimited? Reform moved away from unlimited exposure: the government normally caps an operator's indemnity by reference to modelled mission risk, but you should confirm the cap and the insurance requirement for your specific mission.