The venture capital industry faces a crippling £1bn a year hike in its tax bill, after the Inland Revenue changed the treatment of tax relief.
British Venture Capital Association chief executive John Mackie has written to Gordon Brown demanding a reversal of policy.
In the letter, seen by The Times, Mackie said that the changes would be a ‘deterrent to private equity to continue to increase its investment in the UK’.
Tax relief that VC firms receive through their investment vehicles relating to interest payments has been halted, a decision that was announced on 4 March.
The Treasury said that the new rules would only cost the industry £5m a year.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
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