Almost three in four (73 percent) high net worth individuals (HNWIs) in the UK think taxes will increase in the next 12 months, with 84 percent of wealthier individuals with the view that they will pick up the bill for future increases, according to a new survey by Wealth Club.
If taxes rise, nine in ten HNWIs are concerned about the impact this will have on their wealth, and of this group 17 percent say they are extremely worried.
Additionally, 43 percent think an increase in taxes is one of the biggest threats to their wealth, but the biggest threat cited was a possible change in government (69 percent).
Also two in five (40 percent) say they would consider emigrating from the UK should taxes rise significantly.
Alex Davies, chief executive and founder of Wealth Club said: “The UK’s top earners paid a total of £54.3 billion in income tax last year. They are now bracing themselves for further tax rises and have no doubt as to who will foot the bill.
“Whether or not they will pay up and shut up remains to be seen. However, the fact that 40 percent would consider moving abroad if tax rises further, perhaps suggests that the goose can be squeezed no more. If 40 percent of wealthier individuals really did leave the country £20 billion could be lost in income tax revenues alone.”
Reflecting further on UK taxes, the majority (67 percent) of HNWIs think income tax is the fairest tax, and 42 percent think the rate income tax is charged is about right. Inheritance tax fares are the worst with 73 percent saying it is unfair or grossly unfair while 85 percent consider the rate too high.
Wealth Club is a UK broker of tax-efficient investments (VCTs, EIS, SEIS, IHT portfolios). It provides high net worth individuals and investors with clear, impartial and researched information on these investments plus access to deals not typically available through mainstream stockbrokers or financial advisers.