With the Budget set to hit wealth creators, high net worth individuals and non doms, there are concerns the Chancellor could be eyeing up an exit tax
A hike in capital gains tax (CGT) rates, inheritance tax changes and the virtual abolition of non dom status are set to be announced in Wednesday’s Budget, which could cause a flight of wealthy individuals from the UK.
Facing a large fiscal hole, Rachel Reeves could be tempted to levy an exit tax on wealthy individuals, non doms and entrepreneurs looking to leave the UK and relocate to a lower tax jurisdiction. After all Italy and the UK are the only countries in the G7 that do not charge an exit tax.
This could work as a percentage tax charge on theoretical gains on assets being relocated offshore. Exit taxes already operate in a number of countries, usually charged at around 30%.
