Utmost Wealth Solutions has warned UK chancellor Rachel Reeves not to underestimate just exactly how internationally mobile ultra high net worth individuals are these days, as the UK Government predicts tax hikes for the UK-based wealthy in the near future.
Reeves has said that she will tax the wealthy in the forthcoming budget as the Institute for Fiscal Studies (IFS) warned that she may need to raise about £40bn to avoid a damaging “fiscal Groundhog Day” next year.
Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions, points to almost significant outflows of the super rich and how potentially counterproductive a repeat would be for the UK government.
Commenting on the matter, Acheson said: “Policymakers should be mindful that the UK’s wealth community is highly internationally mobile. It has never been easier for HNWs and those with wealth to move jurisdictions. The UK has already seen a significant flight of non-doms and HNWs following the measures in last year’s Budget. Any similar measures will likely exacerbate this outflow and lead to lower tax receipts.”
