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Monday
May022011

Tax rates to blame for UK exodus.

A recent survey was conducted by Lloyds TSB of 1000 individuals with at least £250,000 of savings and investments. The results are illuminating as they show that 35% are giving thought to moving abroad solely because of the UK's high income tax rates.

The recent budget changes are clearly not popular with these high net worth individuals. The triple whammy of the 50 pence tax rate (on earnings in excess of £150,000) the higher rate income squeeze and increased national insurance contributions are proving to be highly controversial. 

The survey did site other factors for Brits moving away from the UK. These included the weather (44%) and to get away from crime and/or anti social behaviour (43%). Only 9% of people in the research thought that they were better of in the UK while more than half thought that they were not.

The managing director (Mr Nicholas Boys Smith) of Lloyds TSB International Wealth is quoted as saying: "Many high earners are concerned about what they perceive as the tax increases that followed the financial crisis. Despite good recent developments, there are still many countries around which high earners believe offer more favourable tax regimes and importantly, a higher quality of life.” Mr Boyes Smith also said "...regrettably, many wealthy people are dissatisfied with life in the UK and are considering leaving."

Mr Boys Smith would not comment on the coalition governments tax policy or the merits of the UK tax system but he did say "we are not expecting a mass exodus,”.

If you are giving thought to a move away from the UK, St Matthew e-Accountants have the expertise to make it a successful and profitable one. Contact us today. Visit www.stmworldwide.com        

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