See also:
Mike Lynch's column in CIO UK

Autonomy CEO Mike Lynch has called on the government to encourage start-ups in the UK by giving IT entrepreneurs a capital gains tax break.

This would provide a strong message that the UK is serious about innovation, he said.

"I think you can construct a tax break for the IT entrepreneurs - some young person who mortgages their house, stays up all night for three years, creates a business and actually works on it.

"Give them a capital gains tax break, because you'll make more tax as long as you tie that to the fact that they employ 100 people at the end of the process," Lynch said.

Last week, the government announced a tax break, but just for those who invest in start-up businesses.

Chancellor George Osborne, in the Autumn Statement, said that any individual investing up to £100,000 in a qualifying new start-up will be eligible for income tax relief of 50 percent, regardless of the rate at which they pay tax.

Lynch also believes in an open-border policy, to attract the best talent in the world to the UK.

He said: "Silicon Valley takes the very brightest people in the world, welcomes them and they set up businesses and employ the locals.

"We're lucky that the UK is a place where people would like to come. I'm not talking about displacing normal IT jobs, I'm talking about [bringing in] some world expert in semiconductors, for example."

The UK government has made some headway on this policy, with the Tier 1 Exceptional Talent route in the visa system.

This currently allows scientists of exceptional talent and achievement to come to the UK without a job offer. Their merits are judged by the relevant society, such as the Royal Academy of Engineering, rather than by the government.