Tax hikes expected to be announced in tomorrow’s Budget could hurt the UK’s stance as a competitive jurisdiction for wealth, Utmost Wealth Solutions’ global wealth specialist Marc Acheson has warned.
Reports that chancellor Rachel Reeves will raise taxes to tackle the £22bn deficit in public finances have been circulating for weeks, including a mansion tax, a surcharge on high-value residential properties.
Ahead of Reeves taking to the despatch box on Wednesday (26 November), Acheson said: “Tomorrow’s Budget is likely to include another significant round of additional tax increases such as a mansion tax alongside potentially further tinkering with the inheritance tax and capital gains tax regimes that will fall on the wealthy.
“Unfortunately, such measures do little to support the UK’s standing as a competitive and appealing jurisdiction for wealth.”
Acheson pointed out the country’s top 1% of taxpayers contribute a third of all tax revenue, which will mean policymakers will have their work cut out stemming the outflow of the wealth community and getting the UK back on track to becoming an attractive destination for wealth.
He added: “In the meantime, given the expected myriad of tax changes, we expect to see continued levels of high demand for financial advisers to support long-term financial planning.”
