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Executives from immoderate of Britain's astir invaluable exertion start-ups person delivered a bombshell informing to Rachel Reeves that tax-raising measures successful this month's fund could unit them to cancel plans to database their companies connected the London Stock Exchange.
Sky News has obtained a missive sent this week by companies including Revolut, Funding Circle, OakNorth, Clearscore and Quantexa urging the chancellor not to enforce an exit taxation connected affluent individuals oregon instrumentality different decisions "which volition effect successful reduced assurance oregon hesitant concern successful the UK".
In total, the signatories to the missive tally companies collectively valued astatine good implicit $100bn.
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Many of them are among the astir prized listing candidates for the UK equity markets astatine a clip erstwhile a little flurry of recently floated candidates has done small to allay concerns astir London's planetary attractiveness against rival fiscal centres specified arsenic New York and Amsterdam.
They said, though, that Ms Reeves indispensable see "how immoderate imaginable changes to the fiscal situation could basal to marque the UK little charismatic to existing and imaginable laminitis - which volition effect successful reduced concern successful UK start-ups and reduced innovation; volition hinder efforts astatine driving growth; and whitethorn besides hold oregon effect successful cancellation of companies' plans to IPO [list their shares publicly] successful the UK".
Their letter, which was sent nether the aegis of the commercialized assemblage Innovate Finance's Unicorn Council for UK FinTech, called connected the chancellor to show enactment for Britain's fintech manufacture and the wider system by reversing changes to superior gains taxation and inheritance taxation rules.
"Recent changes... person made the UK little charismatic to entrepreneurs seeking to commencement a caller business, and to the highly skilled endowment that volition assistance thrust these startups.
It cited the simplification successful the beingness bounds for Business Asset Disposal Relief from £10m to £1m arsenic a origin successful weakening the UK's "ability to pull and clasp founders".
"Founders request to spot a unchangeable and favourable taxation situation successful bid to instrumentality the hazard of gathering a concern successful the UK," the bosses wrote.
Their informing is particularly acute for the Treasury due to the fact that it comes from a radical of entrepreneurs who person been assiduously courted by Ms Reeves successful caller months.
The chancellor has hosted a bid of roundtable events with companies including Clearscore, Oaknorth and Revolut arsenic she tries to presumption London arsenic the astir compelling banal speech successful the satellite to database fast-growing exertion businesses.
Earlier this week, she hosted a reception successful Downing Street which the Treasury said was to observe the caller show of the UK equity market.
"I americium not immune to the communicative that has surrounded UK equity markets, and I excessively privation to spot much listings, some joining and staying connected our equity markets," Ms Reeves told guests.
"The show of our markets this twelvemonth has been overmuch stronger than you would deliberation if you work the fiscal press.
"In fact, the FTSE 100 and FTSE each stock are adjacent to grounds highs."
Revolut, which is expected to beryllium valued astatine astir $75bn successful an ongoing stock sale, has been engaged successful a protracted effort to unafraid a afloat UK banking licence, with the Treasury precocious reported to person sought to intervene with regulators connected the company's behalf.
Francesca Carlesi, Revolut's UK CEO and co-chair of the Unicorn Council, is among the signatories to the missive to Ms Reeves.
Others see Vishal Marria, laminitis and CEO of fiscal transgression detection institution Quantexa, which could question a listing astatine a valuation of good implicit $3bn arsenic aboriginal arsenic adjacent year.
Rishi Khosla, the Oaknorth founder; Philip Belamant, Zilch co-founder and CEO, and co-chair of the Unicorn Council; Charles McManus, ClearBank co-founder; ClearScore brag Justin Basini; Louise Hill, GoHenry's laminitis and enforcement chair; Funcing Circle CEO Lisa Jacobs; Francesca Simoneschi, co-founder and CEO of TrueLayer; and ThoughtMachine brag Paul Taylor besides signed the letter.
Ms Reeves, who volition present her 2nd fund arsenic chancellor connected November 26, made a code this week successful which she braced Britons for steep taxation hikes.
In caller weeks, industries including banking and gambling person intensified their lobbying efforts successful a bid to debar being deed by punitive taxation hikes.
An summation successful the basal complaint of income taxation is present anticipated arsenic the chancellor seeks to plug a fiscal spread worthy tens of billions of pounds.
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