Latest news with #OxfordIonics
Yahoo
13 hours ago
- Business
- Yahoo
‘I'm a millionaire fleeing Britain – a Reeves U-turn would stop me leaving'
I have a spreadsheet open in front of me on my computer, detailing the exact number of days I have left to stay in the UK this tax year. The reason? Labour's changes to non-doms inheritance tax rules. The changes are so costly that they have forced me to reconsider where I live. When my days in the UK run out, I will not spend time in some tax haven; I'll just go back home to South Africa and work out the next steps. If Rachel Reeves reverses the inheritance tax change for non-doms, I would unequivocally stay and grow my venture capital business in the UK. I know so many other millionaires in my situation. Many have left but still have properties here and have not yet completely settled in their new homes. Half of these people would rush back if the rules around paying inheritance tax on worldwide assets changed, because we are all upset to leave and feel forced. But the Chancellor must act quickly before it is too late. I want to keep investing in growth companies like I did with quantum computing start-up Oxford Ionics, which last week sold for $1.1bn (£820m) to a US firm. But after raising £500m to invest in Britain's most exciting start-ups since I arrived here in 2019, my future investment will now be elsewhere. This money will likely help grow companies in mainland Europe instead. It is a shame, as Oxford and Cambridge are where the most exciting cutting-edge projects are happening. But I am sadly certainly not going to bring any more money to the UK if I cannot stay. I know people will say: 'It's just inheritance tax. What does it matter if you are dead?' My businesses are my life's work. I want them to secure my sons' futures. I grew up with very little, fleeing communist Poland as a child refugee with my parents and two siblings when the country started running out of food in the early 1980s. The only way to get out was to flee with fake papers. We spent the whole of 1981 in a migrant camp in Austria, where my parents applied to countries accepting refugees. We ended up in South Africa without knowing anything about the country or the apartheid regime. We didn't speak English and had $500 to our name. In the next years, we were just about surviving. I studied actuarial science at university because that was the only way to get a bursary, and we had no money for schooling. After working for a couple of insurance companies, I realised I'm not diplomatic enough to be a corporate employee. So I ended up in the world of start-ups and decided to start my own company. I gambled everything on it, putting my house up as collateral. It is today one of South Africa's large financial services groups. I came to the UK for security reasons in 2019, after speaking out against corruption in Jacob Zuma's government and being left fearing for my life. London has become my home. I had hoped to live here for the rest of my life. Being forced to leave for reasons outside my control feels much like grief. The impact goes beyond just my own personal circumstances. I have had to let 12 casual household staff go – gardeners, cleaners, builders. While I still have a venture capital firm, Braavos, in Britain, I will not hire anyone new here. Over time, I may have to think about relocating it. I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers. I'm considering putting my house that I love up for sale too, but for now I am holding out for a miracle. If there is none, I will be forced to go once my 90 days in Britain this tax year are up. I'm leaving on the strong advice of my tax advisers, as the new rules around inheritance are unworkable for me. For one, South Africa has foreign exchange controls. That means if I were to die under current rules, South Africa may refuse to release the funds to settle a huge inheritance tax bill in Britain. Even ignoring the difficulty of getting the money out, my wealth is mainly held in the form of shares in the financial services company Sygnia, which I founded and built in South Africa. My sons would be forced to sell those shares quickly. If you want to sell anything fast, you'll have to do so with a big discount, which would devalue the company. How can this be good for the economy? If Reeves changes her mind, I would immediately cancel my plans to leave. I could rehire all of my household staff, take my property off the market and focus on raising funds for another investment fund to boost British growth companies. My message to the Chancellor is this: you came into power to fix the economy, so don't destroy growth by putting politics before economics. As told to Eir Nolsøe Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
2 days ago
- Business
- Telegraph
‘I'm a millionaire fleeing Britain – a Reeves U-turn would stop me leaving'
I have a spreadsheet open in front of me on my computer, detailing the exact number of days I have left to stay in the UK this tax year. The reason? Labour's changes to non-doms inheritance tax rules. The changes are so costly that they have forced me to reconsider where I live. When my days in the UK run out, I will not spend time in some tax haven; I'll just go back home to South Africa and work out the next steps. If Rachel Reeves reverses the inheritance tax change for non-doms, I would unequivocally stay and grow my venture capital business in the UK. I know so many other millionaires in my situation. Many have left but still have properties here and have not yet completely settled in their new homes. Half of these people would rush back if the rules around paying inheritance tax on worldwide assets changed, because we are all upset to leave and feel forced. But the Chancellor must act quickly before it is too late. I want to keep investing in growth companies like I did with quantum computing start-up Oxford Ionics, which last week sold for $1.1bn (£820m) to a US firm. But after raising £500m to invest in Britain's most exciting start-ups since I arrived here in 2019, my future investment will now be elsewhere. This money will likely help grow companies in mainland Europe instead. It is a shame, as Oxford and Cambridge are where the most exciting cutting-edge projects are happening. But I am sadly certainly not going to bring any more money to the UK if I cannot stay. Refugee to millionaire I know people will say: 'It's just inheritance tax. What does it matter if you are dead?' My businesses are my life's work. I want them to secure my sons' futures. I grew up with very little, fleeing communist Poland as a child refugee with my parents and two siblings when the country started running out of food in the early 1980s. The only way to get out was to flee with fake papers. We spent the whole of 1981 in a migrant camp in Austria, where my parents applied to countries accepting refugees. We ended up in South Africa without knowing anything about the country or the apartheid regime. We didn't speak English and had $500 to our name. In the next years, we were just about surviving. I studied actuarial science at university because that was the only way to get a bursary, and we had no money for schooling. After working for a couple of insurance companies, I realised I'm not diplomatic enough to be a corporate employee. So I ended up in the world of start-ups and decided to start my own company. I gambled everything on it, putting my house up as collateral. It is today one of South Africa's large financial services groups. I came to the UK for security reasons in 2019, after speaking out against corruption in Jacob Zuma's government and being left fearing for my life. Pushed out London has become my home. I had hoped to live here for the rest of my life. Being forced to leave for reasons outside my control feels much like grief. The impact goes beyond just my own personal circumstances. I have had to let 12 casual household staff go – gardeners, cleaners, builders. While I still have a venture capital firm, Braavos, in Britain, I will not hire anyone new here. Over time, I may have to think about relocating it. I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers. I'm considering putting my house that I love up for sale too, but for now I am holding out for a miracle. If there is none, I will be forced to go once my 90 days in Britain this tax year are up. I'm leaving on the strong advice of my tax advisers, as the new rules around inheritance are unworkable for me. For one, South Africa has foreign exchange controls. That means if I were to die under current rules, South Africa may refuse to release the funds to settle a huge inheritance tax bill in Britain. Even ignoring the difficulty of getting the money out, my wealth is mainly held in the form of shares in the financial services company Sygnia, which I founded and built in South Africa. My sons would be forced to sell those shares quickly. If you want to sell anything fast, you'll have to do so with a big discount, which would devalue the company. How can this be good for the economy? If Reeves changes her mind, I would immediately cancel my plans to leave. I could rehire all of my household staff, take my property off the market and focus on raising funds for another investment fund to boost British growth companies.
Yahoo
2 days ago
- Business
- Yahoo
‘I'm a millionaire fleeing Britain – a Reeves U-turn would stop me leaving'
I have a spreadsheet open in front of me on my computer, detailing the exact number of days I have left to stay in the UK this tax year. The reason? Labour's changes to non-doms inheritance tax rules. The changes are so costly that they have forced me to reconsider where I live. When my days in the UK run out, I will not spend time in some tax haven; I'll just go back home to South Africa and work out the next steps. If Rachel Reeves reverses the inheritance tax change for non-doms, I would unequivocally stay and grow my venture capital business in the UK. I know so many other millionaires in my situation. Many have left but still have properties here and have not yet completely settled in their new homes. Half of these people would rush back if the rules around paying inheritance tax on worldwide assets changed, because we are all upset to leave and feel forced. But the Chancellor must act quickly before it is too late. I want to keep investing in growth companies like I did with quantum computing start-up Oxford Ionics, which last week sold for $1.1bn (£820m) to a US firm. But after raising £500m to invest in Britain's most exciting start-ups since I arrived here in 2019, my future investment will now be elsewhere. This money will likely help grow companies in mainland Europe instead. It is a shame, as Oxford and Cambridge are where the most exciting cutting-edge projects are happening. But I am sadly certainly not going to bring any more money to the UK if I cannot stay. I know people will say: 'It's just inheritance tax. What does it matter if you are dead?' My businesses are my life's work. I want them to secure my sons' futures. I grew up with very little, fleeing communist Poland as a child refugee with my parents and two siblings when the country started running out of food in the early 1980s. The only way to get out was to flee with fake papers. We spent the whole of 1981 in a migrant camp in Austria, where my parents applied to countries accepting refugees. We ended up in South Africa without knowing anything about the country or the apartheid regime. We didn't speak English and had $500 to our name. In the next years, we were just about surviving. I studied actuarial science at university because that was the only way to get a bursary, and we had no money for schooling. After working for a couple of insurance companies, I realised I'm not diplomatic enough to be a corporate employee. So I ended up in the world of start-ups and decided to start my own company. I gambled everything on it, putting my house up as collateral. It is today one of South Africa's large financial services groups. I came to the UK for security reasons in 2019, after speaking out against corruption in Jacob Zuma's government and being left fearing for my life. London has become my home. I had hoped to live here for the rest of my life. Being forced to leave for reasons outside my control feels much like grief. The impact goes beyond just my own personal circumstances. I have had to let 12 casual household staff go – gardeners, cleaners, builders. While I still have a venture capital firm, Braavos, in Britain, I will not hire anyone new here. Over time, I may have to think about relocating it. I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers. I'm considering putting my house that I love up for sale too, but for now I am holding out for a miracle. If there is none, I will be forced to go once my 90 days in Britain this tax year are up. I'm leaving on the strong advice of my tax advisers, as the new rules around inheritance are unworkable for me. For one, South Africa has foreign exchange controls. That means if I were to die under current rules, South Africa may refuse to release the funds to settle a huge inheritance tax bill in Britain. Even ignoring the difficulty of getting the money out, my wealth is mainly held in the form of shares in the financial services company Sygnia, which I founded and built in South Africa. My sons would be forced to sell those shares quickly. If you want to sell anything fast, you'll have to do so with a big discount, which would devalue the company. How can this be good for the economy? If Reeves changes her mind, I would immediately cancel my plans to leave. I could rehire all of my household staff, take my property off the market and focus on raising funds for another investment fund to boost British growth companies. My message to the Chancellor is this: you came into power to fix the economy, so don't destroy growth by putting politics before economics.
Yahoo
3 days ago
- Business
- Yahoo
America is hijacking Britain's hopes of a tech revolution
With its thatched cottages, 11th-century church and grade-II listed buildings, Harwell appears to be the quintessential Oxfordshire village. A brisk stroll through the nearby fields, however, and you will soon find yourself in the beating heart of Britain's scientific community. Harwell Campus, previously a Second World War airfield base for bomber squadrons and gliders, is home to 7,500 scientists and £3bn worth of technological infrastructure. A vast spherical building housing the Diamond Light Source, a powerful particle accelerator, dominates much of the campus. Yet the hub is also home to the UK's National Quantum Computing Centre. This 40,000 sq ft facility, opened by science minister Lord Patrick Vallance last year, is designed to hold 12 cutting-edge quantum computers. These machines, Lord Vallance said in October, would help 'solve some of the biggest challenges we face, whether it's delivering advances in healthcare, enhancing energy efficiency, tackling climate change, or inventing new materials'. The centre is integral to Oxford's hope of succeeding in the global race to crack quantum computing, as it competes with tech giants from both the US and China. These quantum machines should, the theory goes, be able to outperform classical computers many times over by relying on the principles of quantum mechanics. However, it appears the rise of Oxford as a quantum hub has not gone unnoticed. Last week, a 60-person start-up called Oxford Ionics was sold in a $1bn (£730m) deal to US rival IonQ, a $10bn US-listed quantum giant. The takeover, made up almost entirely of the company's shares, landed Chris Ballance and Tom Hart, Oxford Ionics's founders, a paper fortune of $180m. Driving the deal were breakthroughs in developing 'trapped ion' quantum semiconductors, as Oxford Ionics developed chips that were twice as powerful as their rivals and less prone to errors. For a start-up founded in a basement in Oxford, the deal represented quite the outcome. Niccolo de Masi, chief executive of IonQ and a Cambridge University graduate, claimed the deal would create a company 'head and shoulders' above its rivals. He also stressed that Oxford would become IonQ's 'global R&D hub'. However, the deal has renewed questions over whether Britain has the ability to scale cutting-edge start-ups to help them compete on the global stage. 'Oxford Ionics epitomises British innovation,' said Henry Lee, a strategist at the Tony Blair Institute for Global Change said last week. 'Brilliant Oxford research. Great early backing. Promising tech. But when it came time to scale? Had to sell to America.' Founders in the nascent quantum sector have similarly mixed feelings about the deal. Sebastian Weidt, the chief executive of Universal Quantum, says the sale was a 'testament to the amazing foundations we have in quantum computing in the UK'. However, he adds it was also an 'example of a long list of companies failing to achieve escape velocity independently in the UK'. Britain was an early mover in quantum technology. In 2014, under David Cameron's coalition, the government earmarked £1bn in state funding for UK scientists and experts in quantum. Rishi Sunak renewed this pledge in 2023 by promising £2.5bn over the coming decade. This helped fund years of learning, as most quantum computers have so far only been useful for esoteric research and experiments, such as complicated maths problems with little practical use. Yet some technology leaders now believe quantum computing technology is at an inflecion point. This includes Jensen Huang, chief executive of $3.5 trillion tech giant Nvidia, who said last week said useful quantum computers were 'within reach'. Inevitably, this has posed questions about whether Britain is ready to capitalise. Late last year, Peter Kyle, Secretary of State for Science, announced £100m to fund five quantum hubs in the UK. Another £121m was set aside in April. However, industry insiders fear this falls short of the amount industry had expected under the £2.5bn strategy set out by Sunak. Ashley Montanaro, co-founder of Bristol start-up Phasecraft, says: 'Delivery of this funding has lagged behind – especially on the software side. 'It's no surprise that UK quantum companies are looking at opportunities beyond these shores.' Oxford Ionics is not the only UK quantum business bought out by a larger US counterpart in recent years. In 2021, Psiquantum, one of the most promising quantum companies founded by Bristol University professor Jeremy O'Brien, moved to Silicon Valley to secure funds. It is now in the process of raising funds at a $6bn valuation. That same year, another start-up called Cambridge Quantum Computing agreed to merge with a unit of US giant Honeywell. Much of its team is now based in the US. Some investors say gaining access to later-stage funding remains a challenge for European businesses in cutting-edge 'deep tech' sectors like quantum. Hermann Hauser, founding partner of Amadeus Partners and an investor in Oxford Ionics, says: 'Finding enough money for European scale-ups is our number one problem.' Rob Jesudason, chief executive of Serendipity Capital, an investor in Quantinuum, says the UK 'still lacks' the 'deep tech-orientated capital to scale these organisations'. Not everyone agrees, including Hussein Kanji, of investment firm Hoxton Ventures, who says that 'too many of us worry that we sell our best companies prematurely'. Meanwhile, Steve Brierley, chief executive of quantum business Riverlane, insists that the Oxford Ionics deal is a 'sign that our quantum sector is maturing and attracting serious international attention'. Rather than this being a problem, he says, 'that is something to be proud of and to build on'. Ballance, of Oxford Ionics, adds that Britain has actually done well to retain such a large proportion of its quantum talent over the past decade. Without the UK championing the technology, he says he would have taken his company to the US a decade ago. Instead, he has built a $1bn business from its base in Oxford, which he says will continue to house its main research centre. Similarly, IonQ's De Massi claims a UK-US tie-up is no bad thing, particularly as the West seeks to defeat China in the race for quantum supremacy. 'We are the best chance at beating China in the quantum space race,' says De Masi. 'This is critical to UK and US national economic security. 'We have to beat those other guys together.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
3 days ago
- Business
- Telegraph
America is hijacking Britain's hopes of a tech revolution
With its thatched cottages, 11th-century church and grade-II listed buildings, Harwell appears to be the quintessential Oxfordshire village. A brisk stroll through the nearby fields, however, and you will soon find yourself in the beating heart of Britain's scientific community. Harwell Campus, previously a Second World War airfield base for bomber squadrons and gliders, is home to 7,500 scientists and £3bn worth of technological infrastructure. A vast spherical building housing the Diamond Light Source, a powerful particle accelerator, dominates much of the campus. Yet the hub is also home to the UK's National Quantum Computing Centre. This 40,000 sq ft facility, opened by science minister Lord Patrick Vallance last year, is designed to hold 12 cutting-edge quantum computers. These machines, Lord Vallance said in October, would help 'solve some of the biggest challenges we face, whether it's delivering advances in healthcare, enhancing energy efficiency, tackling climate change, or inventing new materials'. The centre is integral to Oxford's hope of succeeding in the global race to crack quantum computing, as it competes with tech giants from both the US and China. These quantum machines should, the theory goes, be able to outperform classical computers many times over by relying on the principles of quantum mechanics. However, it appears the rise of Oxford as a quantum hub has not gone unnoticed. 'Had to sell to America' Last week, a 60-person start-up called Oxford Ionics was sold in a $1bn (£730m) deal to US rival IonQ, a $10bn US-listed quantum giant. The takeover, made up almost entirely of the company's shares, landed Chris Ballance and Tom Hart, Oxford Ionics's founders, a paper fortune of $180m. Driving the deal were breakthroughs in developing 'trapped ion' quantum semiconductors, as Oxford Ionics developed chips that were twice as powerful as their rivals and less prone to errors. For a start-up founded in a basement in Oxford, the deal represented quite the outcome. Niccolo de Masi, chief executive of IonQ and a Cambridge University graduate, claimed the deal would create a company 'head and shoulders' above its rivals. He also stressed that Oxford would become IonQ's 'global R&D hub'. However, the deal has renewed questions over whether Britain has the ability to scale cutting-edge start-ups to help them compete on the global stage. 'Oxford Ionics epitomises British innovation,' said Henry Lee, a strategist at the Tony Blair Institute for Global Change said last week. 'Brilliant Oxford research. Great early backing. Promising tech. But when it came time to scale? Had to sell to America.' Founders in the nascent quantum sector have similarly mixed feelings about the deal. Sebastian Weidt, the chief executive of Universal Quantum, says the sale was a 'testament to the amazing foundations we have in quantum computing in the UK'. However, he adds it was also an 'example of a long list of companies failing to achieve escape velocity independently in the UK'. Inflection point Britain was an early mover in quantum technology. In 2014, under David Cameron's coalition, the government earmarked £1bn in state funding for UK scientists and experts in quantum. Rishi Sunak renewed this pledge in 2023 by promising £2.5bn over the coming decade. This helped fund years of learning, as most quantum computers have so far only been useful for esoteric research and experiments, such as complicated maths problems with little practical use. Yet some technology leaders now believe quantum computing technology is at an inflecion point. This includes Jensen Huang, chief executive of $3.5 trillion tech giant Nvidia, who said last week said useful quantum computers were 'within reach'. Inevitably, this has posed questions about whether Britain is ready to capitalise. Late last year, Peter Kyle, Secretary of State for Science, announced £100m to fund five quantum hubs in the UK. Another £121m was set aside in April. However, industry insiders fear this falls short of the amount industry had expected under the £2.5bn strategy set out by Sunak. Ashley Montanaro, co-founder of Bristol start-up Phasecraft, says: 'Delivery of this funding has lagged behind – especially on the software side. 'It's no surprise that UK quantum companies are looking at opportunities beyond these shores.' Oxford Ionics is not the only UK quantum business bought out by a larger US counterpart in recent years. In 2021, Psiquantum, one of the most promising quantum companies founded by Bristol University professor Jeremy O'Brien, moved to Silicon Valley to secure funds. It is now in the process of raising funds at a $6bn valuation. That same year, another start-up called Cambridge Quantum Computing agreed to merge with a unit of US giant Honeywell. Much of its team is now based in the US. Race for quantum supremacy Some investors say gaining access to later-stage funding remains a challenge for European businesses in cutting-edge 'deep tech' sectors like quantum. Hermann Hauser, founding partner of Amadeus Partners and an investor in Oxford Ionics, says: 'Finding enough money for European scale-ups is our number one problem.' Rob Jesudason, chief executive of Serendipity Capital, an investor in Quantinuum, says the UK 'still lacks' the 'deep tech-orientated capital to scale these organisations'. Not everyone agrees, including Hussein Kanji, of investment firm Hoxton Ventures, who says that 'too many of us worry that we sell our best companies prematurely'. Meanwhile, Steve Brierley, chief executive of quantum business Riverlane, insists that the Oxford Ionics deal is a 'sign that our quantum sector is maturing and attracting serious international attention'. Rather than this being a problem, he says, 'that is something to be proud of and to build on'. Ballance, of Oxford Ionics, adds that Britain has actually done well to retain such a large proportion of its quantum talent over the past decade. Without the UK championing the technology, he says he would have taken his company to the US a decade ago. Instead, he has built a $1bn business from its base in Oxford, which he says will continue to house its main research centre. Similarly, IonQ's De Massi claims a UK-US tie-up is no bad thing, particularly as the West seeks to defeat China in the race for quantum supremacy. 'We are the best chance at beating China in the quantum space race,' says De Masi. 'This is critical to UK and US national economic security. 'We have to beat those other guys together.'
