You would think the richest members of society wouldn’t feel the effects of the economic problems, but apparently you’d be wrong.
The Governments plan to spread the burden of taxation has sent a wave of discontent from some of societies most wealthy.
An exodus of half a million of the UK’s wealthiest people is likely, according to data released by Lloyds TSB. As the UK economy continues to struggle, and the government continues with its austerity measures, one in five wealthy citizens are looking for an escape route.
The government’s policy of the 50% tax rate on people earning over £150,000 and its cut on relief for charitable donations has caused many to think that they may be better off elsewhere. Some experts warn that due to the high level of taxation, Britain has become a less attractive place for the wealthy, and with the ease of electronic banking those individuals can move their money out of the country with relative ease.
The centre for business and economic research (Cber) released a report in November 2011 saying that; ‘Britain has lost its place as an attractive, low-tax jurisdiction that welcomes job creators and celebrates financial success. It was once one of the most competitive tax regimes in the world, the British tax system has become one of the most punitive.
In the same time span, other countries have lowered their top rates of tax (and often become more stable, comfortable and prosperous). Countries are increasingly designing tailor-made tax regimes and offering one-to-one negotiations to attract increasingly mobile entrepreneurs and their businesses.’
The figures released by Lloyds seem to back the Cber findings, raising further questions of the Governments taxation policy. Despite the latest findings only 42% of wealthy Brits think the UK offers a worse quality of life than other wealthy countries and 41% think life in the UK is more stressful than a life overseas.
A report released by NatWest Interpersonal Banking shows that more and more emigrants are looking to Asia as a place to escape to. A combination of low taxation and demand for skilled professionals is raising the regions appeal.