The UK Budget this week “spread pain across the middle classes” rather than targeting high-net-worth individuals, according to James Ward, head of private client at law firm Kingsley Napley.
He added: “This was another high tax budget from Rachel Reeves, but not targeting the individuals we were led to believe.
“High net worths in general seem to have escaped some of the worst touted changes such as exit taxes, increases in CGT rates, an extension of the 7-year gifting rule, the introduction of a lifetime cap on gifting, significant wealth taxes, an increase in the additional higher rate of income tax, removal of the 25% tax free pension lump sum, to name a few.
“Instead, the Budget seems to be spreading the pain across the middle classes targeting income tax on non-employment derived income, freezing the income tax rates bringing thousands more into the higher rate brackets and restricting salary sacrifice claims.”
“Overall, it would seem that Rachel Reeves has read the room, read the headlines and seen the numbers of wealthy individuals leaving the UK and has not wanted to add more fuel to the fire. Whether this will stop the movement of HNWs overseas is another matter, but there is no doubt the budget’s bark was worse than its bite for high net worths.”
