Higher taxes will make it harder for Britain to build 'the next Nvidia,' tech execs say

Published On Nov 1, 2024, 4:53 AM

The UK government's recent budget announcement includes significant tax increases on capital gains, National Insurance contributions, and carried interest for venture capital, raising concerns among tech executives and investors about the ability to foster a thriving tech sector. The capital gains tax will see a rise to 18% from 10%, and the rate for carried interest will increase to 32%. This tax environment may hinder the UK's ambition to become a global AI hub, with warnings that such changes could stifle investment and innovation, making it harder to develop companies akin to Nvidia.

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The increase in tax rates is likely to deter investment in UK tech companies and startups, impacting their growth potential. The sentiment among tech leaders indicates a negative outlook towards establishing a competitive tech ecosystem in the UK, particularly for venture capital-backed firms.

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