LONDON The IEE has welcomed the announcement by Gordon Brown in his pre-Budget statement that he will undo the tax changes that have, inadvertently, prompted a dramatic decline in spin-out activity from academic research.
It says that academics could not take the risk of being taxed on the notional value of their start-up shares long before there was any prospect of financial reward for their endeavours.
Professor Andy Hopper, Professor of Computer Technology at the University of Cambridge and a member of the IEE's IT Sector Panel, said, “At the heart of entrepreneurship and wealth creation are incentives and motivation. I am glad the Government has got rid of one road block and look forward to further progress being made to make wealth creation in the academic sector, through spin-outs and other activities, an attractive proposition.”
The recognition by Government of the value to the UK economy of new high technology companies is very welcome according to the IEE.