A new study has found that Labour‘s chaotic tax policies are pushing Britain’s wealthy to consider moving abroad.
The survey of 200 multi-millionaires with a fortunate of at least £50million revealed that the Government’s U-turn tax policies were a bigger factor in deciding whether to leave the UK than the rate of the tax itself.
Two-thirds of ultra-wealthy individuals were found to have considered leaving Britain in the last year for tax reasons, the poll by accountancy firm BDO showed, citing a ‘trust gap’ between the rich and the Labour Government.
While 42 per cent of respondents said tax policies were the main driver of their decision rather than high tax rates – which were given by just 18 per cent as a factor in leaving.
Analysis also showed that 55 per cent of ultra-wealthy and their inheritors felt people had a responsibility, not an obligation, to pay tax, while 82 per cent thought tax was a ‘social responsibility to be paid in full’. The problem, therefore, seems political.
Expert Elsa Littlewood said the ultra wealthy are suffering from ‘change fatigue’ within the tax system, and are ‘under constant pressure’.
Ms Littlewood said: ‘My sense is that they didn’t want to go. But year on year there’s been change after change, and living with that instability is wearing them down.
‘For many, the final straw came when the government started making big changes to inheritance tax and noises around big capital taxes. They feel that they are under constant pressure.’
Under Rachel Reeves’ chancellorship, the non-dom status which allowed UK residents with a permanent home outside the UK to pay UK tax only on money earned within the UK was scrapped, prompting many to leave Britain
Billionaire property developer Richard Livingstone (pictured with his wife Natalie) was one of Britain’s many ultra-rich who left Britain following Rachel Reeves’ tax raids
Billionaire former Labour donor Lakshmi Mittal (pictured) also quit Britain
BDO cited the Government’s threats to significantly change inheritance tax and also make changes to capital gains tax (CGT) as the last straw for many ultra-rich Britons.
Under Rachel Reeves’ chancellorship, the non-dom status which allowed UK residents with a permanent home outside the UK to pay UK tax only on money earned within the UK was scrapped.
This change prompted a number of big business names to leave the country.
Subsequent rumours over more future taxes were then floated, including an increase on CGT in the second Budget, which caused uncertainty and likely contributed to the ‘lack of trust’ many of the millionaires polled said they had towards the Government.
But she instead increased tax rates on savings and dividends and hit homeowners with a ‘mansion tax’ last November, barely making any changes to CGT as had been suggested.
One billionaire, and former Labour donor, who quit Britain following Rachel Reeves’ tax raids was Lakshmi Mittal.
The Indian-born steel tycoon will now reportedly spend much of the future in Dubai and is registered as a resident in Switzerland for tax.
Others among the billionaire exodus from Britain included Revolut boss Nikolay Storonsky and Nassef Sawiris, the Egyptian co-owner of Aston Villa FC.
Brothers Ian and Richard Livingstone also followed and headed for Monaco. The business-minded siblings oversee a £9billion property empire in the UK and abroad, an online casino and plush Monte Carlo hotel.
Another billionaire developer, Malawi-born Asif Aziz – owner of the former London Trocadero on Piccadilly Circus – moved his tax residency to Abu Dhabi at the end of last year.