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IFS Criticizes UK Founders Tax Break

The head of the Institute for Fiscal Studies told lawmakers that Britain's new founders tax break is a dreadful policy. Helen Miller argued the measure rewards established entrepreneurs instead of helping start-ups grow.

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Britain's Chancellor of the Exchequer, John Healey, carries the traditional red ministerial box as he leaves No 11 Downing Street on his way to the House of Commons to deliver the first budget under Prime Minister Andy Burnham's government, in London, Britain, October 28, 2026. REUTERS/Hannah McKay

United Kingdom will introduce a founders relief tax break offering a 10% capital gains tax rate on up to £10 million ($13.4 million) in lifetime gains starting April. The policy is designed to support high-growth companies, but critics argue it fails to drive early-stage growth or productivity. The measure risks encouraging founders to sell successful firms prematurely rather than scaling them over the long term.