More than half of business owners would consider leaving Britain if Labour raised capital gains tax, according to a new poll by Helm

LONDON, Sept. 10, 2024 /PRNewswire/ — Six in ten members of Helm, Britain’s largest and longest-running entrepreneurs’ network, have said they would consider leaving the UK to avoid a rise in capital gains tax (CGT).

About 60% of 154 members surveyed by founding business network Helm said they would consider relocating if Labour increased capital gains tax on entrepreneurs selling their businesses.

Labour is considering raising capital gains tax by 20% to bring it in line with income tax, meaning a taxpayer taxed at a higher rate would pay 45%.

Helm members are founders of companies with an average turnover of £21m. The combined turnover of Helm’s 400 member companies is over £8bn.

However, UK SMEs make up 99.9% of all UK businesses, with a combined turnover of £2.4 trillion in 2023. If the Helm survey results were replicated across the country, it would not only wipe out any gains, but bankrupt Britain.

Andreas Adamides, CEO of Helm, said: “The results of this survey were astonishing, showing the highest response rate we have ever seen.

Entrepreneurs are the lifeblood of Britain. Our poll highlights a crucial point: if Labour wants to support innovation and growth, it must consider the impact of increasing capital gains tax, which could stifle the very spirit that drives our economy. Many entrepreneurs are already setting up shop in countries like Portugal, known for its tech scene. Ignoring the impact of capital gains tax could significantly reduce tax revenues and harm the future of British entrepreneurship.”

Nimesh Shah, CGT expert and CEO of Blick Rothenberg, said: “It’s no surprise that so many entrepreneurs are considering their UK future, given the very bleak picture presented by Keir Starmer and Rachel Reeves, and a clear sign that capital gains tax rates will be increased.

Entrepreneurs are concerned that rates could be aligned with income tax, up to 45%, making investment less attractive. The difference between 0% tax if you leave the UK and 45% in the UK is a strong incentive to leave. Most entrepreneurs find the current rate of 20% fair, and a big increase could reduce tax revenue, with HMRC predicting a loss of £3.4 billion over three years if there was a 10% increase.

For more information, visit: https://www.helmclub.co/

• Helm (formerly known as The Supper Club until 2022) was founded in 2003 and is the leading membership community for scale-up founders and CEOs in the UK.
• Board members must have businesses with a turnover of at least £2 million.
• The 400 members generate a combined turnover of £8 billion.
• The survey was conducted among members online between September 3 and 5, 2024.
• Of the 400 members invited to participate, 154 responded to the survey.
• Of the 154 respondents asked whether they would ‘consider moving abroad if capital gains tax increased in the autumn budget’, 92 said yes, 32 said ‘no or don’t know’ and 30 said ‘I would if I could’ (children in school etc).

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