Businesses that move abroad after spinning out of UK universities may be forced to pay an “exit tax” under plans being considered by the government.
Ministers want to discourage companies benefiting from taxpayer support then taking valuable intellectual property (IP) and jobs overseas.
Lord Vallance, the former science minister and current chairman of Andy Burnham’s AI taskforce, is said to be spearheading the proposal.
The levy would be based on the percentage of a company’s valuation if it sells or floats overseas, according to The Sunday Times.
It is understood the plan is part of goverment attempts to halt an exodus of high-growth companies and ensure the UK taxpayer is getting value for money, though it is unclear how the exit tax would be enforced, other than to build in a levy when state support is agreed.
About 4% of spinouts from UK universities have moved abroad in recent years, according to a Centre for Cities report published last year.
There are concerns that a tax of this kind would create a barrier to some firms receiving support.
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