Startups Slam UK Finance For ‘Dangerous’ Tax Penalty Proposal

A proposal to penalize UK startups that take advantage of state support and then list abroad of has been called “dumb” and “dangerous” by a group representing early-stage companies.

UK Finance, which represents the financial services industry, said in a policy paper that the next government should consider ways to claw back some or all tax breaks and other incentives if a startup “ultimately chooses to list, or move valuable operations, outside the UK.”

The proposal was criticized by rival lobby group the Startup Coalition, whose executive director Dom Hallas said it was “not only a dumb idea, it’s a ...