New research shows that UK government plans to tax the country’s UHNWIs will be counter-productive as tax revenues will fall and UK investments will be sold.
The research, carried out by The Society of Trust and Estate Practitioners, shows that over half of the UK’s UHNWIs are already leaving or making contingency plans to leave or sell their UK investments. In addition, one third of wealthy non-doms are leaving, planning to leave or sell UK investments taking £2.1 billion of tax revenues with them.
“For the first time we can confirm that wealth generators are preparing to leave the UK in significant numbers.” said Keith Johnston, STEP’s director of policy. “We now know wealthy foreigners invest between £75 and £125 billion in the UK and pay £7.2 billion in tax. Instead of generating more revenue the government’s proposals will mean jobs, investments and tax revenue going abroad.”
However, it is not only the tax that the UK would lose if government proposals go-ahead as planned. Non-doms spend £16.6 billion in the UK every year. Even more strikingly, resident non-doms invest over £40 billion in UK businesses.