As many predicted, the ascension of UK’s Labour party to power is likely to bring about a rush of leftist economic policies that will worsen rather than alleviate the dire economic situation that Britain is facing.
High-net individuals and entrepreneurs in general ‘are already fleeing Britain’ as widespread fears grow over a raft of tax rises as part of Labour’s first Budget.
Bankers, financial advisers and business chiefs warn of an ongoing exodus, as Keir Starmer’s government may ruin Britain with a ‘widely expected increase in capital gains tax (CGT)’.
Telegraph reported:
“Ceri Vokes, a partner at law firm Withers Worldwide, who works with entrepreneurs and private equity executives, said a number of her wealthy clients had already moved overseas this year, with the election ‘the main driver’. She added: ‘People with hundreds of millions of pounds [are leaving] because changes can be more impactful for them’.”
Those leaving the UK are usually entrepreneurs and private equity executives in the top income bracket.
They seek Italy, the United Arab Emirates (UAE) and Switzerland as destinations.
The consensus is that Britain’s wealthiest are ‘getting out while the going is good’.
“’Sir Keir’s warning about a ‘painful budget’ just reaffirms their concerns that major inheritance tax and capital gains hits will be coming soon. As a result, they are actively preparing their exit from the UK’.”
Labour’s upcoming tax raid is pissing off even businesses that are pro-Labour.
“Sir Martin Sorrell, the chairman of S4 Capital and founder of advertising giant WPP, warned that with “increased mobility in the digital age” there could be “a considerable exodus and avoidance” in the event of a capital gains crackdown.”
Small business owners are selling their companies before CGT gets increased in the Budget on Oct 30.
It will be very hard to win back wealth creators who abandon Britain.
Charlie Mullins, founder of Pimlico Plumbers:
“I don’t like the idea of the capital gains [changes], I don’t like the idea of inheritance tax. […] Any property I have in the UK under my name I will be selling. I still have a place there now in Westminster, but that will be getting sold. […] I know quite a few millionaires and billionaires who have left the UK, set up in Monaco or Dubai. Italy are offering a good deal now. […] I know a lot of people have moved their money from the UK. Not just because of tax, but because of Labour’s policies on workers’ rights, and on most things.”
Gains made from selling a business are currently taxed at 20% but Labour will equalize these rates with income tax, which is 45%.
“One City banker said there had been a ‘rush for exits’ from business owners hoping to finalise takeovers before Oct 30 or start a sales process before the end of the tax year to avoid the capital gains threat. They said: ‘Lots of entrepreneurs are trying to get their deals done and I can see the same thing happening as Brexit where there was so much dealmaking going on before it came in’.”
The post LABOUR MADNESS: Keir Starmer’s Upcoming ‘Tax Raid’ and Leftist Policies Are Driving Wealthy Individuals and Entrepreneurs To Leave the UK in Droves appeared first on The Gateway Pundit.