Families across the UK and even those overseas with assets in Britain need to urgently consider ways to mitigate the potential impacts of the new UK government, an independent financial advisory service chief says.
Nigel Green, chief executive and founder of deVere Group, warns tax rises are on the way as both the Chancellor and Prime Minister have refused to rule out capital gains, inheritance, and pension tax hikes in the upcoming Budget.
He says: “With the Chancellor and Prime Minister refusing to rule out these increases, and the government appearing to be in full briefing mode, deVere Group is calling on its clients and the public to act now to safeguard their wealth.
“The warning signs are unmistakable: a painful adjustment is on the way, and families across Britain, and those overseas with assets in the UK, are facing tax hikes which could significantly hit their wealth.”
He continues: “Capital gains tax (CGT), inheritance tax (IHT), and pension taxes are being seen by the government as low-hanging fruit—quick and effective means to generate revenue.
“However, this focus puts significant pressure on many middle-class families, as well as investors, and high-net-worth individuals, who will suddenly find themselves shouldering a heavier tax burden.
“The impact, we believe, will prompt a scramble to review financial portfolios and implement strategies to protect assets before the new measures take effect.
“Safeguarding your investments against potential tax hikes is essential. Don’t wait until the Budget is announced—proactive planning is key. This includes considering tax-efficient investment vehicles, rebalancing portfolios, and potentially realizing gains under the current CGT rates before any changes are implemented, for example.”
Additionally, high-net-worth individuals might find themselves contemplating more drastic measures, such as relocating overseas to avoid the anticipated tax burden.
“Faced with the prospect of increased tax burdens, many wealthy individuals are actively exploring relocation to countries with more favourable tax regimes.
“Popular destinations such as Spain, Italy, Switzerland, Malta, Dubai, and Singapore are seeing increased interest, thanks to their lower tax rates and sophisticated financial planning strategies tailored to affluent individuals.
“Many of these individuals already own properties abroad, highlighting their international mobility and readiness to move their tax domiciles,” notes Nigel Green.
The potential exodus of HNWIs poses significant implications for the UK economy.
The contributions of the individuals, through both direct taxes and indirect investments, have historically played a crucial role in the country’s prosperity.
Their departure could lead to a reduction in tax revenues, affecting public services and infrastructure development. Furthermore, the UK’s reputation as a global hub for wealth and business might suffer, deterring future investors and entrepreneurs.
The deVere CEO concludes: “There is, we believe, a significant tax raid coming. By reviewing portfolios now and making the necessary adjustments, we can help investors protect their wealth. But the key is early action—waiting until the budget is announced could mean missing out on crucial opportunities to mitigate the impact.”
