We, along with a number of startup leaders, are urging the government to make temporary changes to existing investment schemes to support the UK’s startups during this period of uncertainty. If taken, these actions would incentivise private investor support, ‘reducing the pressure on the public purse’.
Jasper Smith, founder of Vala Capital, who is heading the group of startup leaders, says that many start-ups and SMEs will not continue to exist without urgent help. The group has written to the Prime Minister and the Chancellor calling on the government to temporarily increase the tax relief available to private investors from 30 per cent to 80 per cent for six months – to deliver up to £2bn to the companies that drive innovation and future growth of the UK’s economy.
In addition to the increase in tax relief, recommendations have also been made to:
- extend tax reliefs to founders and directors of the businesses so that they are further encouraged to save the businesses they represent
- temporarily set aside any EU State aid restrictions, particularly those related to investing in companies that are in financial difficulty
- use existing EIS managers to allocate capital, to stand in place of the banks where equity is more appropriate than debt
At Crowdcube, we're hugely supportive of the calls to raise the ceiling on tax reliefs. Now, more than ever, we need to get behind this new generation of businesses so that they can continue to drive innovation and challenge the status quo. Only by supporting start-ups and high-growth businesses through these trying times can we ensure Britain remains a leading light as a global entrepreneurial hub.
Join us and help support the small businesses you love during these tough times by signing this petition today.