Reports suggesting the UK chancellor is considering an exit tax for people deciding to move abroad could trigger a wave of people leaving the UK before it comes to pass, Utmost Wealth Solutions has warned.
According to the weekend papers, Rachel Reeves is mulling a 20% tax on the business assets of people choosing to leave the UK, with the aim of raising £2bn. The ‘settling-up charge’ would be in line with policies across most G7 countries, The Times reports.
Currently expat status provides exemption from the sale of assets, such as shares in numerous companies, but the proposals would see the 20% charge levied on the value of these assets when exiting the country.
Marc Acheson, global wealth specialist at Utmost Wealth Solutions, said: “Such a measure risks further eroding the UK’s attractiveness to the global wealth community.
“Even talk of it could prompt behavioural responses and encourage wealthy people to try to leave in advance of it potentially being applied. With the country’s highest taxpayers making an outsized contribution to tax revenues, any further loss of this community could likely reduce the overall tax take.”
