Startup success is rare enough in the UK without any more taxes
If our rare startup successes are taxed further, more of our spinouts will end up sold early to foreign buyers and we risk losing their IP.
The UK's new Prime Minister has touted the country as the global "innovation nation", yet failed to provide any support for startups and entrepreneurs in his speech. Startup investors, including the reporter, are deeply concerned that the proposed October Budget's capital gains tax (CGT) rise could significantly impact the nation's innovators, making it difficult for them to attract funding and compete with foreign investors.
The journalist argues that higher CGT will lead to early sales of successful spinouts to foreign buyers, resulting in the loss of proprietary technology. The UK ranks third in the world for deep tech economies, but without investors willing to back these ventures, the nation risks falling further behind. The reporter emphasizes that scientists are today's superheroes, risking everything to solve humanity's greatest challenges, but they need patient capital and investors to succeed.
The lack of investment from UK sources, such as angels, family offices, and co-investors, is a significant problem for the UK tech ecosystem. The author concludes that if the government raises CGT further, many promising British startups will be sold early to foreign buyers, putting the country's innovation at risk.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
