There is “real concern” that the upcoming autumn budget will impose “the most substantial changes to the taxation of wealth in a generation,” Payne Hicks Beach partner, Basil Dixon, has warned.
Dixon’s comments follow claims that West Ham United co-owner, David Sullivan, has been forced to lower the asking price for his London home by £10mn due to fears of a crackdown on non-doms by the Labour government.
Rachel Reeves previously pledged to close non-dom tax loopholes. Sullivan claims as a result of this, the super rich are fleeing the UK ahead of the budget on October 30.
Sullivan was not alone in his summation as Dixon echoed that the budget could include “substantial” changes to the current taxation system, not only for non-doms but also for people who have lived in the UK their entire lives.
“The government has said that it wants to grow the economy but it may find this ambition to be at odds with a tax policy that penalises and targets wealth, or is even perceived to do so,” he added.
“There is a real risk that the very people the government needs if it is to achieve its economic goals will leave.
“They certainly have the means and will to go and the departures have already started.”
Dixon urged the government to review its proposals and, in particular, carefully consider any tightening of the rules that would make it more difficult for people to pass on capital wealth to their children and future generations.
“A widening of the scope of IHT will be seen by many as something they cannot accept. Ultimately, UK tax policy must be driven by the needs of the country and not used as a tool to settle old scores. That would be in no one’s interests," he added.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
