Experts at Oxford and Exeter Universities said high-technology ventures had slumped in the wake of the new rules, which now force academics to pay income tax on the value of shares sold in such schemes, the Financial Times reported.
As one example, Exeter University spun out five schemes last year, but none so far this year.
Previously academics who took a stake in a business set up by their university were charged only capital gains tax, payable after selling shares. Taper relief could have reduced the tax bill to as little as 10%.
In 2001/2002 the amount of wealth generated by universities increased from £212m to £289m.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states