Capital Gains Tax worries overtake the UK tech sector ahead of the Autumn Budget
The UK tech industry is on edge as speculation mounts over potential changes to Capital Gains Tax (CGT) in the upcoming Autumn Budget.
Leading auditing and advisory firm Blick Rothenberg has expressed concern that such changes could have a negative impact on the fintech ecosystem, a key driver of the UK’s global reputation.
Simon Gleeson, a partner at the firm, commented: “This week has been a turbulent one for the UK technology sector. Keir Starmer’s ambiguous stance on possible tax increases, as noted by Rachel Reeves at the International Investment Summit 2024 in London, has added to the uncertainty.
A letter signed by 66 fintech leaders, warning of possible migration if CGT increases, has added to the growing concern. Gleeson noted that some employees at Monzo reportedly want to withdraw money before the budget, fearing higher tax rates.
He added: “Start-ups and founders, known for their perseverance and vision, can face what feels like punitive measures if they are taxed heavily to reap long-term rewards.” Such a change risks sending negative signals to international investors, undermining the UK’s appeal as a hub for talent and innovation.”
Despite the uncertainty, the government announced a positive note at the conference, highlighting £63 billion in new investment and the creation of 38,000 jobs. However, the upcoming Budget remains a significant source of concern.
