Monday, 24 March 2014 09:17
Budget could trigger surge in Britons choosing expat life
Last week's Budget could spur successful, working-age Britons to consider a move overseas, predicts the chief executive of a worldwide financial advisory firm.
Nigel Green, the founder and CEO of deVere Group, which has more than 80,000 mainly expatriate clients worldwide, said a recent deVere survey concluded that 72 per cent of middle to top earners in the UK have 'seriously considered', 'are thinking about', or 'would be tempted' by a move overseas.
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Personal taxation was cited as the primary motivation for quitting Britain for 65 per cent of those polled.
Mr Green said HMRC figures had shown an extra 1.4m UK taxpayers were pulled into the 40 per cent tax band over the last three years, with around 4m paying this rate today. HMRC believes that the government's plans will see that number reach 5.3m by 2016.
He said: "As such, the so-called 'higher' band increasingly looks more like a 'regular' band in the UK; it can no longer conceivably be seen exclusively as the tax bracket of 'the rich'.
"The one per cent rise announced in last week's Budget may not be a huge increase but it is likely to be received as another blow by middle and top earners.
"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.
"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."
He continues: "As our recent poll reveals, the UK's higher earners already feel 'soaked' by taxes. Nearly three-quarters of those surveyed reported that they are tempted to quit Britain.
"As these people are of working age, ambitious and career-focussed, they would in our experience typically consider destinations such as Dubai, Abu Dhabi, Hong Kong, Tokyo, Shanghai and South Africa.
Some 315 deVere clients were polled in February 2014.
Nigel Green, the founder and CEO of deVere Group, which has more than 80,000 mainly expatriate clients worldwide, said a recent deVere survey concluded that 72 per cent of middle to top earners in the UK have 'seriously considered', 'are thinking about', or 'would be tempted' by a move overseas.
{desktop}{/desktop}{mobile}{/mobile}
Personal taxation was cited as the primary motivation for quitting Britain for 65 per cent of those polled.
Mr Green said HMRC figures had shown an extra 1.4m UK taxpayers were pulled into the 40 per cent tax band over the last three years, with around 4m paying this rate today. HMRC believes that the government's plans will see that number reach 5.3m by 2016.
He said: "As such, the so-called 'higher' band increasingly looks more like a 'regular' band in the UK; it can no longer conceivably be seen exclusively as the tax bracket of 'the rich'.
"The one per cent rise announced in last week's Budget may not be a huge increase but it is likely to be received as another blow by middle and top earners.
"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.
"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."
He continues: "As our recent poll reveals, the UK's higher earners already feel 'soaked' by taxes. Nearly three-quarters of those surveyed reported that they are tempted to quit Britain.
"As these people are of working age, ambitious and career-focussed, they would in our experience typically consider destinations such as Dubai, Abu Dhabi, Hong Kong, Tokyo, Shanghai and South Africa.
Some 315 deVere clients were polled in February 2014.
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