Just over 70% of high net worth individuals (HNWIs) think taxes will increase in the next 12 months, according to the survey by insurer Wealth Club.
A minority (17%) said they were extremely worried about the impact; with 43% thinking an increase in taxes is one of the biggest threats to their wealth, especially if there is a change in government (69%).
Should taxes rise significantly, two in five (40%) told researchers they would emigrate from the UK.
“The UK’s top earners paid a total of £54.3bn ($72.3bn, €61.5bn) in income tax last year,” said Alex Davies, chief executive and founder of Wealth Club.
“They are now bracing themselves for further tax rises and have no doubt as to who will foot the bill.
“Whether or not they will pay up and shut up remains to be seen. If 40% of wealthier individuals really did leave the country £20bn could be lost in income tax revenues alone.”
Fairness
Reflecting further on UK taxes, the majority (67%) of HNWIs think income tax is the fairest tax, and 42% think the rate income tax is charged is about right.
Inheritance tax fares worse – 73% think it’s unfair or grossly unfair and 85% consider the rate too high.
“If nearly half the people consider a tax ‘grossly unfair’, as is the case with IHT, then there is a real problem,” said Davies. “Any attempt to increase inheritance tax will be hugely unpopular and politically suicidal for the party that tries to introduce it.”
