Budget tax threat ‘forcing some property investors to look abroad’

Budget tax threat ‘forcing some property investors to look abroad’


Todays other news
The improved mood follows the latest Bank of England rate...
Four in five UK self-employed entrepreneurs have struggled to get...
The cost of home insurance in the UK increased by...
The lender has claimed to move away from the 'them...
L&G Mortgage Club has launched an end-to-end digital mortgage solution...

A warning has been issued that a huge number of investors in the UK and now seeking to transfer their assets out of the country.

Asset management organisation deVere Group claims that Rachel Reeves’ Budget last October has unleashed “an unprecedented response” with 42% of those with financial assets in or ties to the UK actively now seeking to transfer their wealth and assets out of Britain and into more tax-friendly jurisdictions.

The organisation has surveyed 600 individuals worldwide, and claims the study results show families, business owners, and investors with UK financial connections exploring options to mitigate the impact of the new tax landscape, which includes higher capital gains and inheritance tax changes on pensions, the abolition of non-domiciled tax status, and increases in National Insurance Contributions (NIC). 

Nigel Green, chief executive of deVere Group, comments: “These measures, designed to address fiscal challenges, are perceived as a direct threat to wealth preservation and financial planning. The policies outlined in the Budget are a game-changer for anyone with financial ties to the UK. 

“The poll shows a remarkable increase in the number of individuals seeking to reposition their wealth abroad. This is not a knee-jerk reaction—it’s a strategic response to an environment that has become increasingly hostile to wealth and investment.”

Among the most popular destinations for those reassessing their financial strategies are Italy, Switzerland, Dubai, Portugal and Malaysia.

“These jurisdictions are being actively explored for their more favorable tax regimes and wealth preservation opportunities. deVere’s global offices report a surge in inquiries, particularly from individuals seeking to establish residency or shift financial assets to these locations.

“The abolition of the long-standing non-domiciled tax status has emerged as a pivotal concern. Historically, this status has attracted significant investment and talent to the UK, fostering a dynamic business environment. 

“Its removal sends a strong signal that the UK may no longer be the tax-friendly hub it once was. For those with property, business interests, or pension plans tied to the UK, this represents a significant shift in financial risk” claims Green.

The heightened capital gains tax (CGT) and inheritance tax on pensions further exacerbate the situation, he adds, suggesting that these changes disproportionately affect individuals who have built up assets and are relying on their financial plans for security.

“The increase in CGT rates is set to discourage investment, while the inheritance tax changes on pensions create additional complexities for families planning to pass on wealth to loved ones efficiently.”

Further compounding the issue is the Budget’s increase in employer National Insurance Contributions (NIC). Business leaders, particularly those running small and medium-sized enterprises, have voiced concerns that this “effectively amounts to a jobs tax.” 

The resulting higher payroll costs are likely to dampen hiring efforts and redirect investment toward automation, “potentially stifling job creation during a critical period for economic recovery.”

The deVere CEO continues: “The Budget appears to prioritise immediate fiscal gains over long-term economic growth. By imposing higher taxes on wealth and on business, the government risks driving away the very individuals and enterprises that contribute significantly to the UK economy.

“The ripple effects of these changes are expected to extend beyond high-net-worth individuals. 

“Middle-income families with property or pensions are also feeling the strain, as the increased tax burden threatens financial stability and long-term planning. The financial policies introduced in this Budget have created an urgent need for proactive wealth management strategies to safeguard assets and maintain financial security.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Introducer Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Currently the deadline is April 1...
IMLA says confidence was rising - until the ill-fated October...
There had been hopes of a small rise in mortgage...
House prices reach a record high according to the Halifax...
A prominent agency expects anxious buyers to keep searching...
The warning comes in the latest market snapshot from Rightmove...
Recommended for you
Latest Features
The improved mood follows the latest Bank of England rate...
Four in five UK self-employed entrepreneurs have struggled to get...
The cost of home insurance in the UK increased by...
Sponsored Content
Historically second charge mortgages or secured loans as they are...
Lenders must say what they mean and mean what they...
Fraudsters attacking the conveyancing sector, successfully stealing large sums of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here