Cornerstone Tax, a prominent property tax expert in the UK, has made a startling revelation about the potential exodus of wealthy individuals from Britain. According to projections by the Adam Smith Institute, there could be a 20% decrease in the number of millionaires in the country during the current Parliament. This prediction is based on the impact of the upcoming Autumn Budget, which is expected to have far-reaching effects on the economy, especially in key sectors like property, pensions, housing, and businesses.
The research conducted by Cornerstone Tax also highlights the fact that a significant portion of the population is considering leaving the UK due to proposed tax increases by the Labour government. In fact, 21% of respondents cited these tax hikes as a key factor in their decision to move abroad, while 16% pointed to the Autumn Budget itself as the decisive reason for their planned departure. New World Wealth estimates that 9,500 millionaires are likely to leave the UK in 2024, making it the second-largest outflow globally.
In addition to the wealthy residents, the research also found that a considerable number of ordinary citizens are expressing concerns about potential tax changes and retirement issues. A staggering 32% of the population stated that changes in the tax system were the main reason they would consider leaving the UK. The upcoming Autumn Budget, to be presented by Chancellor Rachel Reeves, is expected to introduce reforms affecting various aspects of taxation, including inheritance tax relief, capital gains tax, pensions tax relief, and more.
If these intentions to leave the UK materialize, the economy could face significant losses in business and property revenue, as well as investment-weighted assets. The research by Cornerstone Tax indicates a growing unease among Brits about the economic plans of the new Labour government. The data also reveals that many Brits are motivated to relocate their families abroad due to the cost-of-living crisis and the reported tax hikes in the Autumn Budget.
According to Cornerstone’s research, the most popular destinations for potential expats considering relocation include Spain, Australia, the USA, Canada, Dubai, Portugal, France, Malta, and Cyprus. David Hannah, Group Chair of Cornerstone Tax, emphasized the concerns among Brits regarding the new Labour government and its proposed tax changes. He highlighted the significant shift in where Brits intend to house their families and businesses, with many considering moving abroad for more favorable conditions.
Hannah also pointed out that the ongoing housing crisis in the UK has led many individuals to believe that renting property abroad offers greater advantages than maintaining a mortgage in the country. This sentiment, combined with the impact of government policies on wealth and talent migration, is reshaping the future of the nation. The findings from Cornerstone’s research paint a concerning picture of a potential exodus from Britain, driven by economic uncertainties and the desire for better opportunities overseas.
