Sunday, September 1, 2024

Top earners and entrepreneurs already fleeing Britain over tax raids

Top earners and entrepreneurs already fleeing Britain over tax raids
Charlotte Gifford, Michael Bow, Lucy Burton, Matthew Field
 


Wealthy individuals and entrepreneurs are already fleeing Britain as fears grow over a raft of tax rises in Rachel Reeves’s first Budget.

An exodus is being reported by bankers, financial advisers and business chiefs with experts warning that the Chancellor risks ruining hopes of faster economic growth with a widely expected increase in capital gains tax (CGT).

 

It comes after Sir Keir Starmer warned last week that those with the “broadest shoulders” would carry the burden of fixing Britain’s ailing public finances.

Ceri Vokes, a partner at law firm Withers Worldwide, who works with entrepreneurs and private equity executives, said a number of her wealthy clients had already moved overseas this year, with the election“the main driver”.

She added: “People with hundreds of millions of pounds [are leaving] because changes can be more impactful for them.”

Those packing their bags and moving overseas are typically entrepreneurs and private equity executives in the top income bracket, she said. Italy, the United Arab Emirates (UAE) and Switzerland are among the most popular destinations.

David Lesperance, of Lesperance and Associates, an advisory firm, said Britain’s wealthiest were “getting out while the going is good”.


He said: “Ever since Rachel Reeves started talking about a ‘fiscal black hole’, my wealthy UK non-dom and domiciled clients have been looking for the other shoe to drop.

“Sir Keir’s warning about a ‘painful budget’ just reaffirms their concerns that major inheritance tax and capital gains hits will be coming soon. As a result, they are actively preparing their exit from the UK.”


Brent Hoberman, the founder of Lastminute.com and Founders Forum, said: “Entrepreneurs are very mobile. Many of them will leave or, maybe even worse, not come to the UK if they aren’t creating entrepreneur-friendly policies.





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