Wealthy Britons looking to leave UK surges over Labour's budget tax threat
Chancellor Rachel Reeves had previously slammed the Conservative Government
PA
Fears are growing over the scale of the chancellor’s impending tax raid on high earners, with the number of wealthy Britons looking to move abroad surging.
Wealth managers say plans to make non-doms’ global wealth subject to UK inheritance tax will be "the final nail in the coffin" for many.
One company that offers relocation services to high net-worth individuals said they saw a 69 per cent jump in inquiries in August compared with the same month last year.
They said they are concerned about potential tax plans in the autumn budget, with Sir Keir Starmer saying those with "the broadest shoulders should bear the heavier burden".
Chancellor Rachel Reeves had previously slammed the Conservative Government
PA
The latest analysis suggests Britain is on track to lose a record 9,500 millionaires this year — more than any other country in the world except China.
Tax partner at RSM, an audit and tax consultant Chris Etherington said his company was experiencing a surge of inquiries from wealthy Britons. He told The Times: "People are re-evaluating their lifestyles and whether this is the [right] place to live."
Corporate tax partner at law firm Clarke Willmott Kim Klahn said: "I’ve had phone calls [where the clients have said]: 'If I don’t get it done by October 30, this could potentially affect my whole retirement planning.'"
Director of tax services at Henley & Partners Peter Ferrigno added: "There has been a lot of talk about the small boats crossing the Channel but no one is looking at the private jets going the other way. I call it the small planes problem."
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Chancellor Rachel Reeves will deliver the Budget on October 30 POOLFormer editor of wealth management magazine Spear’s Alec Marsh added: "Unfortunately, since the Brexit referendum in 2016, Britain has had the reverse Midas touch, struggling to retain its place at the top table for attracting global wealth.
"While many of our fundamentals remain unchanged — the basics such as the English language, the rule of law, time zone and so on, there is a swathe of disincentives for the wealthiest and most globally mobile, of which the non-dom changes are the final nail in the coffin."
HM Revenue & Customs says there are around 74,000 non-doms in the UK, and 37,800 of them pay a £30,000-a-year fee to keep this tax status, after being resident in the country for more than seven years.
Analysis by Warwick University and the London School of Economics suggests non-doms have at least a combined £10.9billion in offshore income and gains that are not subject to British tax.
While Labour has confirmed tax rises ahead, Chancellor Rachel Reeves is expected to counter this by focusing on growth ahead of the Budget with a keen eye on business perceptions of sound strategy and economic stability.
A spokesman for the Treasury said: "Following the spending audit, the chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22 billion hole the government has inherited.
"Decisions on how to do that will be taken at the budget in the round."