Key facts
- Entrepreneurs are urging Andy Burnham to rule out an 'exit tax' on individuals leaving the UK.
- Speculation about a 'settling up' charge, which would apply capital gains tax to those leaving the UK, is causing concern.
- Founders are reportedly already considering moving overseas and planning exit routes.
- A spokesperson for Burnham declined to comment on the speculation.
- Concerns exist that such a tax could be devastating for the UK economy.
Entrepreneurs are calling on Andy Burnham to definitively rule out the introduction of an 'exit tax' on individuals leaving the UK, warning that ongoing speculation could lead to a significant exodus of wealth creators.
Concerns are mounting that the mere discussion of a 'settling up' charge, which would levy capital gains tax on business owners departing the country, is already prompting founders to explore options for moving overseas. Barney Hussey-Yeo, founder of the fintech firm Cleo, stated that founders are already planning their exit routes, warning that such a tax would be 'devastating for the UK economy.'
When asked if Burnham would rule out exit taxes, a spokesperson indicated they would not comment on speculation or formulate tax policy 'off the cuff.' The focus on potential tax hikes is amplified by Burnham's commitment to fiscal rules aimed at reducing government borrowing.
Andreas Adamides, CEO of the start-up network Helm, expressed frustration with the consideration of additional burdens on founders, emphasizing the need for clarity on areas that will remain untouched by new taxes. Last year, leaders of Britain's tech unicorns had previously written to Rachel Reeves, warning that an exit tax would undermine confidence and encourage businesses to relocate. Dan Neidle, founder of Tax Policy Associates, also cautioned that exit tax rumors last summer led some entrepreneurs to leave the UK.