Labour’s Autumn Budget exodus: It’s not just millionaires leaving the UK – London Business News | Londonlovesbusiness.com

Cornerstone Tax, the UK’s leading property tax expert, has revealed that Britain’s exodus could reach far beyond its wealthiest residents, as new projections from the Adam Smith Institute predicts a 20% decline in the number of millionaires in Britain during the current Parliament.

Revealing new societal insights into the material impact of the upcoming Autumn Budget – affecting the economy’s most significant growth engines, such as property, pensions, housing, and businesses – the national research found that 21% of the nation cite proposed tax increases from the Labour government as a key factor for moving abroad.

A further 16% of respondents stated that the Autumn Budget itself serves as the decisive reason for their planned departure.

Analysis from New World Wealth projects that 9,500 millionaires are set to leave the UK during 2024 – the second-largest outflow globally – in anticipation of reported tax plans.

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However, in addition to the nation’s wealthiest residents, new national research from Cornerstone Tax has found that a significant portion of society has expressed deep concerns over potential tax plans and retirement issues, with 32% of the population citing changes in the tax system as the main reason they would leave the UK.

The Autumn Budget, to be delivered by Chancellor Rachel Reeves on 30 October, is expected to introduce reforms affecting inheritance tax relief; impose higher taxes on capital gains (CGT) along with adjustments to CGT exemptions; increase taxes on investment income; alter pensions tax relief and tax-free allowances; and modify Business Assets Disposal Relief.

Cornerstone’s first-of-its-kind report reveals that if Brits act on their intentions, the UK economy could face significant losses amounting to billions of pounds in business and property revenue, as well as investment-weighted assets.

Underscoring the monumental shift in where the nation intends to house their families, finances, and futures, Cornerstone’s research has unveiled that a further 24% specifically plan to move their tax residency abroad if the Autumn Budget confirms reported tax hikes.

The findings from Cornerstone’s research suggest growing concerns among Brits about the new Labour government and its economic plans for the country. Underscoring the looming crisis of an imminent exodus from Britain, the research has further shown that 23% of Brits are now motivated to relocate their families abroad due to the ongoing cost-of-living crisis.

As 24% of Brits also contemplate relocating their tax residence overseas due to the Labour government’s Autumn Budget, Cornerstone is able to provide a unique index of where potential expats are considering their future move to. The most popular destinations for relocation according to Cornerstone’s study are as follows:

• Spain
• Australia
• USA
• Canada
• Dubai
• Portugal
• France
• Malta
• Cyprus

David Hannah, Group Chair of Cornerstone Tax, said, “Our data highlights a clear issue that there are significant concerns amongst Brits regarding the new Labour government and its impending Autumn Budget.

“With proposed increases to Capital Gains Tax and Inheritance Tax, it’s no surprise that 16% of the population agree that this budget will be the deciding factor in their decision to leave the UK. The thought of rising taxes amidst a cost-of-living crisis is pushing people to reconsider their futures.

“What we’re now seeing is a significant shift in where Brits intend to house their families, their money, and their businesses. Our research shows that 32% of individuals are contemplating a move abroad due to these tax changes, with 23% considering relocating their families and 21% thinking about taking their businesses overseas. These are not just fleeting thoughts—they are serious intentions for many Brits as they seek more favourable conditions elsewhere.

“Moreover, our research highlights that 29% of Brits believe that renting property abroad offers greater advantages than maintaining a mortgage in the UK, reflecting the profound impact of the ongoing housing crisis. This situation has left many feeling trapped in a challenging market, prompting them to seek better alternatives overseas.

“The data support this revealing that Spain, Australia and the USA are among the top destinations for the 24% of Brits considering relocating their tax residence. This trend underscores how the government’s policies are not only exacerbating the housing crisis but are also driving a significant migration of wealth and talent, reshaping the future of our nation.”