People earning this wage 'looking to leave UK' over Labour tax threat
People earning over this salary are looking to leave the UK over the new Labour Party government's Autumn Budget tax threat. Chancellor Rachel Reeves had previously slammed the Conservative Party Government for leaving behind a £22 billion black hole in the public finances.
Now, fears are growing the wealthiest earners - and non-doms - will leave the UK. 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.
High-net-worth individuals, or HNWIs, are defined by their net worth and the liquidity of their assets. Generally, HNWIs have a net worth between £1 million and £5 million in liquid assets . The amount you need is debatable and can vary, but the distinction between liquid and illiquid assets is important.
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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."
Former 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."
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."