Over-taxed Britons could jump overseas
Chancellor George Osborne confirmed on Wednesday that the higher rate of tax threshold is to increase for the first time next month, while it will steadily rise in years to come.
A recent deVere poll revealed that the UK’s higher earners already feel ‘soaked’ by taxes, with nearly three-quarters admitting they are tempted to quit Britain, while 65% cited personal taxation as a primary motivation.
Green said: “The decision announced in the Budget to raise the threshold will drag yet more hard-working British people into the higher rate tax band.
“I suspect that this could all trigger more of Britain’s top achievers to consider a move abroad to safeguard and maximise their money in order to give themselves and their families the best lifestyle opportunities.
“History has taught us that if higher earners perceive they are taxed too much, they will simply move elsewhere to lower tax jurisdictions because they have the resources to do so.”
Likely destinations for successful Briton’s include Dubai, Abu Dhabi, Hong Kong, Tokyo, Shanghai and South Africa.
Currently 4 million pay the rate, as an extra 1.4 million taxpayers were pulled into the band over the last three years, while HMRC believe the government’s plans to see that number reach 5.3 million by 2016.
Green added: “Many will also, rightly, assume that this is a trend that will surely only gain momentum in coming years.
“Higher taxes are almost inevitable due to the country’s changing demographics, namely an ageing population. This is because fewer workers supporting pensioners means that each worker will have to pay a higher proportion of their salary in tax.”