An open letter signed by over 150 figures within the tech startup ecosystem has urged the chancellor to not embody an exit tax in her upcoming finances.
Organized by the Startup Coalition, the letter claims a tax on enterprise house owners transferring their firms exterior of the UK would “inform founders that their concepts and improvements aren’t welcome, however that they need to both get out early or not come in any respect”.
The warning has come amid rumours that Chancellor Rachel Reeves (pictured) may impose a cost on excessive internet value figures fleeing the UK.
The letter claims that to realize the federal government’s development ambitions, the UK should work with entrepreneurs to make sure it’s the finest place to construct new, profitable firms.
“At a time when founders are being courted around the globe, we needs to be constructing bridges, not partitions,” the letter stated.
“We must always appeal to expertise and capital, pool funding, and ship insurance policies that decrease obstacles and provides globally minded founders each purpose to construct within the UK and scale to the world.”
Signatories of the letter embody Beamery, Dexory, Fuse Power, Daen Capital, 20VC and Notion Capital.
“We the undersigned urge the federal government to rule out an exit tax and focus as an alternative on making the UK probably the most enticing place on the earth to construct and scale the subsequent trillion greenback firms.”
Regardless of the considerations expressed by entrepreneurs weary of accelerating their tax burdens, there have been calls from figures suggesting an exit tax may generate important earnings for the Treasury while defending the economic system in opposition to these fleeing.
A report from 2024 from teachers on the London College of Economics and the Centre for the Evaluation of Taxation claimed the UK was behind its friends in Australia, Canada, the US, France, Germany and Japan by not charging some type of exit levy.
