LTCG tax parity may bring more family offices to the startupland

Family offices of millionaires are likely to increase capital allocation to new-age companies, following the budget proposals to bring parity on long-term capital gains (LTCG) tax across all financial assets and abolish the angel tax.

Family offices—about 300 now compared with around 45 in 2018 as per a PwC report—have increased their investment activity in startups over the past year and the budget announcements will give a major boost to it, a senior executive at a top family office fund said. Removal of angel tax will also help these investors come in startups at an early stage, industry executives said.