Insurtech UK response to Autumn Budget 2024
As the new government publishes its first, foundational fiscal statement, Insurtech UK echoes the Chancellor’s goals for a growing UK economy underpinned by financial stability, and celebrates recognition of the many innovative firms, highly skilled workforce, and investment opportunities across the country.
Insurtech UK welcomes the Chancellor’s commitment to work with entrepreneurs on a positive business environment in the UK. It is encouraging to see ongoing long-term commitment to the Enterprise Investment (EIS) and Venture Capital Trust (VCT) schemes incentivising private investment into start-up firms, as well as retaining R&D relief rates after a period of complex change, although this must be accompanied by clarity, consistency and confidence in the application of R&D criteria and administration.
However, other significant measures announced today run contrary to this ambition, with increases now due to Business Asset Disposal Relief (BADR), and Investors’ Relief (IR) in 2025 and 2026, and to Capital Gains Tax (CGT) on shares with more immediate effect. It is vital that the mission for growth should create - not constrain - incentives for entrepreneurs to establish and grow their businesses here in the UK, recognising the jobs, tax revenue and innovation these produce as successful companies scale.
It is also disappointing that this Budget has not taken the opportunity to increase the Enterprise Management Incentive (EMI) criteria in line with inflation.
At Insurtech UK we will continue to engage with government ministers on these important details throughout the autumn and beyond, in line with recommendations in our latest Roadmap recommendations to strengthen the UK’s global leadership in insurance innovation.