Founders push for 'repeat entrepreneur relief' to keep exit capital flowing back into UK start-ups

"The proposal, dubbed 'repeat entrepreneur relief', would allow founders who sell shares in their companies and reinvest the gains into a new venture within twelve months to defer capital gains tax indefinitely."

"UK Private Capital argued there is a compelling rationale for aligning tax incentives with the post-exit phase, when founders hold significant capital and possess hard-won operational expertise."

"The Founders Forum Group compared the proposal to the American Qualified Small Business Stock scheme, which allows founders to pay no capital gains tax on gains of up to $10 million."

"A survey conducted by the Founders Forum Group found that nearly nine in ten founders support the idea of a tax incentive to encourage reinvestment."

Prominent entrepreneurial voices in Britain are advocating for a targeted tax incentive called 'repeat entrepreneur relief'. This proposal would allow founders to defer capital gains tax indefinitely if they reinvest proceeds from selling shares into new ventures within twelve months. The initiative aims to keep successful exits within the domestic start-up ecosystem. Various groups argue that the current tax framework inadequately supports founders in recycling their capital and expertise post-exit, contrasting it with the favorable tax treatment in Silicon Valley.

Read at Business Matters