No Result
View All Result
  • Private Data
  • Membership options
  • Login
  • COUNTRY
    • ITALY
    • IBERIA
    • FRANCE
    • UK&IRELAND
    • BENELUX
    • DACH
    • SCANDINAVIA&BALTICS
  • PRIVATE EQUITY
  • VENTURE CAPITAL
  • PRIVATE DEBT
  • DISTRESSED ASSETS
  • REAL ESTATE
  • FINTECH
  • GREEN
  • PREMIUM
    • ItaHubHOT
      • ItaHub Legal
      • ItaHub Tax
      • ItaHub Trend
    • REPORT
    • INSIGHT VIEW
    • Private Data
Subscribe
  • COUNTRY
    • ITALY
    • IBERIA
    • FRANCE
    • UK&IRELAND
    • BENELUX
    • DACH
    • SCANDINAVIA&BALTICS
  • PRIVATE EQUITY
  • VENTURE CAPITAL
  • PRIVATE DEBT
  • DISTRESSED ASSETS
  • REAL ESTATE
  • FINTECH
  • GREEN
  • PREMIUM
    • ItaHubHOT
      • ItaHub Legal
      • ItaHub Tax
      • ItaHub Trend
    • REPORT
    • INSIGHT VIEW
    • Private Data
Home PRIVATE EQUITY

Do UK tech folk need to stop being ‘whiny’?

Siftedby Sifted
November 2, 2024
Reading Time: 6 mins read
in PRIVATE EQUITY, UK&IRELAND, VENTURE CAPITAL
Share on FacebookShare on Twitter

In recent weeks, one topic has been making all the headlines in UK startupland: the Budget — and how it’ll impact the country’s tech sector. TLDR; most tech folk are feeling pretty gloomy.

The government is reportedly considering scrapping Business Asset Disposal Relief (BADR) — which limits tax to 10% on exit takings of up to £1m — and raising capital gains tax (CGT) on the sale of shares, as well as employers national insurance contributions (a payroll tax).

It’s led to a chorus of discontent from hundreds of entrepreneurs, founders scrambling to rush through sales and tax experts fielding “unprecedented” enquiries from startups mulling overseas relocation. You don’t have to look far on social media to find tech folk criticising the government and warning of the impact of tax changes on the future of UK tech.

Advertisement

But some in the sector paint a slightly different picture.

Richard Robinson, founder and CEO of legaltech Robin AI, tells me some of the negative reaction from the startup community to the Budget is overblown.

“There’s definitely some point at which taxes are so high that it will dissuade people from taking a risk — but I think that threshold is quite high,” he says.

“When I started Robin AI, I didn’t think about tax even once. There are a thousand things that could kill a small business and thinking about the tax I would pay on an exit just isn’t where my head was.”

It’s a lack of entrepreneurial culture — not tax — that’s holding back UK tech, said Patrick Ryan, cofounder of micro-investing platform Odin.

“I agree with everyone complaining about the CGT changes — but I also think we need to stop being whiny little bitches and just build elite companies in the UK anyway,” Ryan said in a LinkedIn post. “The main thing that needs to change is our culture & mindset, not our taxation system. We need to think big, and aim higher.”

Monzo founder Tom Blomfield also pointed out on X that a founder in California pays a higher rate of capital gains tax on the sale of business shares than the UK, adding that it “hasn’t stopped people there”.

Despite all that, many in the tech sector tell me they’re bracing themselves — and many say they’re already considering drastic measures should taxes rise.

A recent survey from lobby group Startup Coalition of 524 founders found that 89% would consider moving themselves or their business abroad and 72% have already explored this. 94% said they’d consider starting a future company abroad if CGT on the sale of business shares was raised.

While that’s looking likely right now — by how much remains to be seen. After weeks of rumour and speculation though, in just a few short hours we’ll know for sure.

Readers — I want to hear from you. If you’ve got thoughts to share when UK finance minister Rachel Reeves announces her Budget at 12.30 UK time later today, get in touch and let me know. I’m all ears.

Advertisement

Read the orginal article: https://sifted.eu/articles/do-uk-tech-folk-need-to-stop-being-whiny/

Gateways to Italy

Gateways to Italy – Offer your services to funds and investors willing to explore opportunities in Italy. Become a partner!

Gateways to Italy – Offer your services to funds and investors willing to explore opportunities in Italy. Become a partner!

by Partner
June 6, 2023

Sign up to our newsletter

SIGN UP

Related Posts

PRIVATE DEBT

White & Case advises Metso on €300 million bond issuance under EMTN programme and tender offer for outstanding bond

June 2, 2025
SCANDINAVIA&BALTICS

Swedish startup Ivy Interactive raises €917k to fast-track internal tool development with AI

June 2, 2025
FINTECH

Madrid-based cybersecurity startup Dedge Security bags €4 million to secure the Web3 ecosystem

June 2, 2025

ItaHub

Crypto-assets supervision rules in Italy, Banca d’Italia will supervise payment systems and Consob on market abuse

Crypto-assets supervision rules in Italy, Banca d’Italia will supervise payment systems and Consob on market abuse

November 4, 2024
Italy’s SMEs export toward 260 bn euros in 2025

Italy’s SMEs export toward 260 bn euros in 2025

September 9, 2024
With two months to go before the NPL Directive, in Italy the securitization rebus is still to be unraveled

With two months to go before the NPL Directive, in Italy the securitization rebus is still to be unraveled

April 23, 2024
EU’s AI Act, like previous rules on technology,  looks more defensive than investment-oriented

EU’s AI Act, like previous rules on technology, looks more defensive than investment-oriented

January 9, 2024

Co-sponsor

Premium

Funds vying for management consulting firm BIP, a CVC portfolio company. All deals in the sector

Funds vying for management consulting firm BIP, a CVC portfolio company. All deals in the sector

March 6, 2025
Private equity, Italy 2024 closes with 588 deals as for investments and divestments from 549 in 2023. Here is the new BeBeez’s report

Private equity, Italy 2024 closes with 588 deals as for investments and divestments from 549 in 2023. Here is the new BeBeez’s report

February 10, 2025
Crypto-assets supervision rules in Italy, Banca d’Italia will supervise payment systems and Consob on market abuse

Crypto-assets supervision rules in Italy, Banca d’Italia will supervise payment systems and Consob on market abuse

November 4, 2024
Venture capital investments top €1.3bn in 208 rounds as of Sep30  in Italy. They were €1.5 in all 2023. The new BeBeez Report

Venture capital investments top €1.3bn in 208 rounds as of Sep30 in Italy. They were €1.5 in all 2023. The new BeBeez Report

October 28, 2024
Next Post

Tax hikes and exit relief scheme changes: How the UK Budget will impact startups

'A kick in the teeth' or 'necessary'? UK tech reacts to tax hikes and exit relief scheme changes in the Budget

EdiBeez srl

C.so Italia 22 - 20122 - Milano
C.F. | P.IVA 09375120962
Aut. Trib. Milano n. 102
del 3 aprile 2013

COUNTRY

Italy
Iberia
France
UK&Ireland
Benelux
DACH
Scandinavia&Baltics

CATEGORY

Private Equity
Venture Capital
Private Debt
Distressed Assets
Real Estate
Fintech
Green

PREMIUM

ItaHUB
Legal
Tax
Trend
Report
Insight view

WHO WE ARE

About Us
Media Partnerships
Contact

INFORMATION

Privacy Policy
Terms&Conditions
Cookie Police

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • COUNTRY
    • ITALY
    • IBERIA
    • FRANCE
    • UK&IRELAND
    • BENELUX
    • DACH
    • SCANDINAVIA&BALTICS
  • PRIVATE EQUITY
  • VENTURE CAPITAL
  • PRIVATE DEBT
  • DISTRESSED ASSETS
  • REAL ESTATE
  • FINTECH
  • GREEN
  • PREMIUM
    • ItaHub
      • ItaHub Legal
      • ItaHub Tax
      • ItaHub Trend
    • REPORT
    • INSIGHT VIEW
    • Private Data
Subscribe
  • Login
  • Cart