Almost three in four high net worth individuals (HNWIs) are expecting an increase in taxes within the next year.
According to findings by Wealth Club, 73 per cent of HNWIs surveyed think taxes will increase in the next 12 months, with 84 per cent believing they will be responsible for picking up the bill for future increases.
If taxes rise, nine in ten HNWIs are concerned about the impact this will have on their wealth. Of those surveyed:
– 43 per cent consider an increase in taxes to be a key threat to their wealth
– 69 per cent consider the biggest threat to be a possible change in Government
– 40 per cent say they would consider emigrating from the UK if there is a significant rise in taxes.
Alex Davies, CEO and founder of Wealth Club, comments: “The UK’s top earners paid a total of £54.3 billion in income tax last year. They are now bracing themselves for further tax rises and have no doubt as to who will foot the bill.
“Whether or not they will pay up and shut up remains to be seen. However, the fact that 40 per cent would consider moving abroad if tax rises further, perhaps suggests that the goose can be squeezed no more. If 40 per cent of wealthier individuals really did leave the country £20 billion could be lost in income tax revenues alone.”
Whilst the majority of respondents (67 per cent) feel that income tax is the fairest tax, inheritance tax (IHT) is considered by 73 per cent to be unfair or grossly unfair and 85 per cent consider the rate too high.
Alex Davies: “If nearly half the people consider a tax “grossly unfair”, as is the case with IHT, then there is a real problem. Any attempt to increase inheritance tax will be hugely unpopular and politically suicidal for the party that tries to introduce it.”
Whether you are in business as an individual or as a corporate, you will want to ensure that you pay no more tax than you are legally bound to do.
Our experts at Beavis Morgan can ensure your tax affairs are as efficient as possible to fit your circumstances. In addition, we can look ahead to retirement and inheritance tax planning.
For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.