Labour to slap Britons with 'painful' tax raid as part of Reeves' Budget: 'Safeguard your investments!'

High-net-worth individuals (HNWIs) are believed to be in the firing line of this oncoming tax raid as Starmer and Reeves attempt to fill a £22billlion "black hole" in the public finances.

Many analysts believe this could trigger a mass exodus of high-earning taxpayers from the UK in a blow to the economy.

Notably, Britons overseas are also expected to be impacted by the new Government's fiscal agenda.

Experts are calling for taxpayers to be aware of their tax liability and prepare in advance for any potential rate hikes from HM Revenue and Customs (HMRC).

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Nigel Green, the CEO and Founder of deVere Group, warned that the upcoming Autumn Budget will be "painful" for many taxpayers.

He explained: "With the Chancellor and Prime Minister refusing to rule out these increases, and the Government appearing to be in full briefing mode, deVere Group is calling on its clients and the public to act now to safeguard their wealth.

"The warning signs are unmistakable: a painful adjustment is on the way, and families across Britain, and those overseas with assets in the UK, are facing tax hikes which could significantly hit their wealth.

"CGT, IHT, and pension taxes are being seen by the Government as low-hanging fruit—quick and effective means to generate revenue."

Notably, the tax expert highlighted that middle-income households will likely not be immune from Labour's future tax raid.

"The impact, we believe, will prompt a scramble to review financial portfolios and implement strategies to protect assets before the new measures take effect," Green added.

"Safeguarding your investments against potential tax hikes is essential. Don’t wait until the Budget is announced—proactive planning is key.

"This includes considering tax-efficient investment vehicles, rebalancing portfolios, and potentially realizing gains under the current CGT rates before any changes are implemented, for example."

Inheritance tax is currently paid at a rate of 40 per cent on the estates of those who are deceased which are worth £325,000.

In comparison, capital gains tax is paid at a different rate of tax on gains from residential property than they do on other assets.

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Higher or additional rate taxpayers will pay 24 per cent on their gains from residential property, 28 per cent from "carried interest" if they manage an investment fund or 20 per cent from other chargeable assets.

Earlier this week, Reeves refused to rule out hiking IHT or CGT.

Speaking to the press, the Chancellor stated: "I’m not going to write a Budget two months ahead of delivering it. We’re going to have to make difficult decisions in a range of areas."

"The UK economy is just emerging from the recession that we entered into last year, and two-quarters of positive economic growth is not going to reverse more than a decade of economic stagnation."