As the chances of the UK’s Labour Party forming a government after the general election on December 12 appear to grow, many wealthy individuals have said they will flee the country and seek residency in low-tax jurisdictions.
According to professionals advising the super-rich, there has been a deluge of enquiries into moving both residency and assets.
Geoffrey Todd, of law firm Boodle Hatfield, told the Guardian newspaper that many clients have already processed the paperwork in preparation to leave. He said: “Lots of high-net worth individuals are worried about having to pay much higher taxes on their wealth and have already prepared for the possibility of a Corbyn government. Rich people want to leave UK if Corbyn is elected. Transfers of wealth are already arranged – in many cases, all that is missing is a signature on the contract.”
According to Todd and others, the rich are much more concerned about the threat of a high-tax government than about Brexit. Other than income tax, the rich are worried about increased rates of inheritance tax and the threat to private schools.
Billionaire John Caudwell, the founder of Phones4u, is one of those considering a quick relocation. He told the Metro newspaper that he would just go and live in the South of France or Monaco if Corbyn is elected. He has an estimated wealth of 1.6 billion euros and is involved in several philanthropic efforts.
Labour’s 2017 manifesto promised that the 45-percent rate of income tax be paid by those earning £80,000 annually, instead of the present £150,000.
PHOTO: John Caudwell