Asset protection and tax planning have long been issues that have concerned business people and other wealthy individuals in the UK and some believe that more people now plan to emigrate in order to mitigate their tax burden.
An article on Money Marketing cited research published recently by Lloyds TSB International, which found that 36 per cent of the UK’s top income bracket want to move to foreign destinations, with the vast majority of these suggesting high taxes were the reason.
Commenting on the findings, Bloomsbury financial planning director Jason Butler said: “It is illogical to state that we are lowering corporation tax to be competitive when we are raising personal taxes to generate revenue. I have already had two wealthy clients emigrate because of high taxes.”
He went on to claim that people who specialise in issues such as asset protection and tax planning in other nations may be busy over coming months. He remarked: “There will be a lot more work for good advisers who understand how tax impacts on those moving abroad.”
Meanwhile, chief executive officer of AES International Sam Instone stated: “We have seen a proliferation of people wanting to leave the UK to benefit from median tax environments and to access their pensions earlier.”
However, not everyone agreed with this viewpoint. For example, Worldwide Financial Planning director Nick McBreen claimed the panic being expressed by some is simply “smoke and mirrors” and suggested that every time there is a change in tax rules, there are stories about how many people will move away from Britain.
Currently, the government is attempting to walk a fine line between gathering more money via taxes in order to help reduce the fiscal deficit and stimulating financial growth too. It remains to be seen whether or not the policies being implemented will have the desired effects.