More than six in ten millionaire investors say they may leave the UK because of concerns over taxation, according to new research.
The study of 341 high net worth individuals, found that 61% have considered becoming non-UK tax resident.
Wealth Club’s research found 16% of respondents are actively considering leaving the UK. The estimated average wealth of those surveyed was around £4.5m.
This week it was revealed that billionaire hedge fund manager Chris Rokos, Britain’s third-largest taxpayer, will leave the UK for Greece, having paid having an estimated £330 million in tax last year.
Lakshmi Mittal, the steel billionaire, Nassef Sawiris, Egypt’s second-richest man, and Guillaume Pousaz, the billionaire founder of Checkout.com, have departed the UK after the government ended the non-dom tax regime.
Respondents to the Wealth Club’s study had overwhelmingly built their own wealth. Just 2% said inheritance or family wealth was the main source of their wealth.
Around 12% accumulated most of their wealth by starting a business, 11% through self-employment, 40% through employment earnings and a further 33% through successful investing.
The Wealth Club research is supported by recent analysis of official data showing the number of UK millionaires has fallen to 442,000 – the lowest level since 2007 and around 7% lower than a year earlier.
While some of the decline reflects weaker asset prices, many commentators believe an increasing number of wealthy people are choosing to leave the UK.
The survey highlights why so many wealthy investors are uneasy. Almost all (97%) believe taxes will definitely or probably increase over the next 12 months, with more than half (53%) convinced tax rises are inevitable.
Inheritance tax is the tax rise that concerns respondents most (22%), followed by wealth taxes (21%) and capital gains tax (18%).
Almost half (47%) identified higher taxes as the single biggest threat to their wealth, while a further 26% cited government policy. Together, these ranked well ahead of inflation, market volatility and geopolitical events.
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