I'm not surprised to read the outcome of Silicon Valley Bank's (SVB) survey of start-ups and their Brexit contingency plans.
As Fast Growth tax lead for PwC Cambridge, location, location, location is a key part of the Brexit dilemma, particularly for start-ups looking to build market presence outside the UK in European and US markets. And, while final decisions may ultimately be informed by post Article-50 negotiations, no decision should be taken lightly, so planning around the tax position is key.
To establish anywhere outside the UK, there are some general principles to consider and, if companies are looking to exit the UK completely (as the SVB survey suggests some may), then care needs to be taken about exit taxes. To the extent that a company has already created IP value in the UK then there may be a cost of exiting. That's why advice is important and our PwC international Pathfinder service can help companies navigate this complexity.
Nevertheless, it's still worth remembering that the UK is still a great place to have your start-up HQ from a tax perspective, with availability of R&D tax credits, Patent Box, entrepreneurs' relief and a low - and falling - low rate of corporate tax.
In summary, establishing overseas is not straightforward and tax considerations should be high on the agenda. It follows, therefore, that tax advice is key.
One in every five UK startups intends to open a European office due to Brexit, according to survey results published Tuesday by Silicon Valley Bank.