Nearly half of the UK’s millionaires are considering leaving the country over fears the new Labour government will hike taxes and introduce unnecessary regulations, a new study has revealed.
At total of 47 per cent of millionaires said they were now more likely to leave the UK than before the general election, according a survey of 262 UK residents with net assets of at least £1m.
Some 83 per cent said they stated that they were concerned about potential regulatory changes that may negatively affect their business, while 89 per cent said they were worried about the future of the UK economy, according to the study.
Following the general election, a total of 87 per cent of those surveyed now believe they can access both better economic and living opportunities overseas. Younger millionaires, aged between 18 and 35, were the most likely to cite their willingness to leave, sparking fears of an exodus of talented wealth creators.
Armand Arton, the founder of investor migration consultancy Arton Capital, said these results were worrying news for the new government.
“It’s clear that wealthy UK citizens are now looking overseas for both their business and lifestyle needs,” he said.
“The new British government has its work cut out to reassure wealthy citizens that it does not wish to create a hostile regulatory and tax regime for its most upwardly mobile citizens,” he added. “If it cannot, it risks losing much of the invaluable investment, tax revenue, and entrepreneurial spirit that they contribute.”
City bosses this week warned Chancellor Rachel Reeves against hiking capital gains tax as she lays out the ground work for a sweeping round of tax raids at her first budget in October.
The Chancellor admitted for the first time on Tuesday the government “will have to increase taxes in the budget” after she claimed to uncovered a £22bn “black hole” in the country’s finances earlier this week.
While Labour has committed to holding the rate of income tax, national insurance and VAT, the party has failed to rule out a lift in the rate of capital gains tax.