Intellect launch their Making BrITain Great Again Technology Manifesto with a call for investment in supporting intellectual property rich (IP) technology companies in order, not only balance the books, but to rebuild a stronger UK business base for the future.
This technology manifesto identifies 4 types of technology business needing support and encouragement:
- Early stage tech start-up – great idea but need support, encouragement and investment
- Established technology companies – proven track record and growing
- Leading IT companies – becoming world players
- Global IT companies – already world players that we would like to see make the UK their home.
Key proposals that caught my eye in the 16 page report include:
- simplifying the Enterprise Investment Scheme (EIS), including allowing entrepreneurs who participate directly in the running of the business to qualify for income tax relief – currently the legislation is designed to incentivise angel investors who are not the founders of the business to invest.
- extending the Corporate Venturing Scheme from 20% to 30% tax relief in order to encourage investment by larger businesses into smaller tech companies. The manifesto points to the success of Silicon Valley investment by corporates into smaller businesses.
- further simplifying the R&D tax credit regime to encourage further successful claims
- careful monitoring of the UK corporation tax rate to encourage inward investment of overseas technology companies
- ‘tax holidays’ for cluster areas of technology companies within designated areas or business parks.
I welcome this report as further progress on a growing body of recommendations and manifestos (e.g. Ingenious Britain and the Conservatives Technology Manifesto all released within recent weeks) that seek to put technology and other advanced emerging sectors at the forefront of growth for Britain – even better, they seek to achieve this by rethinking tax incentives and support mechanisms for these high growth sectors.
Download the report here.