Advisers have welcomed Tory proposals to reduce corporation tax and reinstate taper relief for capital gains tax, claiming current tax and regulatory systems are pushing entrepreneurs out of Britain.
Needanadvisor.com director Ashley Clark says tax changes are essential if the Government wants to encourage the many disillusioned entrepreneurs to continue setting up businesses. He says: “The system is broke and needs fixing. If I had my time again, I would not set up my business in Britain. We live in a very high tax state and this stifles entrepreneurism.
“Slapping on capital gains tax of 18 per cent has gutted small firms and introducing an entrepreneurial concession is a joke. Entrepreneurs are penalised for success.”
Lifesearch managing director Tom Baigrie says the UK is “without doubt” unfriendly to start-up companies and he believes excessive regulation is standing in the way of financial services entrepreneurs.
He says the Tory approach would help but fears red tape could still scupper success. He says: “Helping entrepreneurs profit from good ideas is not on the FSA’s agenda, quite the opposite. They are looking to ensure levels of corporate governance that are only realistically achievable in bigger businesses. Our industry badly needs inward investment and due to the unintended effects of regulation and past failings of ABI members and their distributors, few non-industry investors will touch the retail financial services sector.”