Top Tech Bosses Warn Reeves Against Raising Capital Gains Tax
While growth is down and Reeves prepares her painful budget, tech bosses in the UK have issued grave warning against the Chancellor raising capital gains tax, something feared to be announced. They’ve rallied against the “alarming” tax hike that would drive talent away from UK start-ups. Paul Taylor, founder of billion-pound firm Thought Machine told City A.M.:
“They’re literally talking about going from one of the best capital gains regimes to the worst. It would be the highest rate in Europe. I don’t think anybody would start a company here – why would you?”
Founder of fintech Curve added: “within a year or two, you’re going to see more companies failing”. Meanwhile, reports of the Treasury equalising capital gains in line with income tax are swirling around SW1, a move that would drive down growth and see a talent exodus. As the representative of over 250 fintech companies Innovate Finance warned, “not all capital gains are equal”…