Chancellor's reported 'exit tax' plan slammed as 'reckless and self-defeating' - London Business News | Londonlovesbusiness.com

"The Chancellor's reported plan to impose a 20% 'exit tax' on the business assets of wealthy individuals leaving the UK would be "reckless and self-defeating," warns Nigel Green, CEO of deVere Group, one of the world's largest independent financial advisory and asset management organisations."

"Rachel Reeves is said to be considering the introduction of a so-called 'settling-up charge' in this month's Budget, targeting those relocating to lower-tax jurisdictions. The levy could apply capital gains tax to the holdings of people quitting the UK, potentially raising around £2 billion for the Treasury."

""This policy wouldn't just fail to raise meaningful revenue; it would destroy confidence, reduce investment and, ultimately, cost the Treasury far more in lost economic activity than it could ever recoup through short-term taxation.""

""They're redirecting capital to economies that reward ambition and provide stability. Britain should be working to attract international wealth, not signalling that it intends to penalise it.""

A reported plan would impose a 20% exit tax on business assets of wealthy individuals leaving the UK, potentially applying capital gains tax and raising about £2 billion. The charge would target relocations to lower-tax jurisdictions and could accelerate the departure of entrepreneurs, business owners and investors. The measure could damage national competitiveness, destroy business confidence, reduce domestic and foreign investment, and redirect capital to economies seen as more rewarding and stable. Observations indicate growing investor caution and reconsideration of UK exposure, making the timing particularly risky amid existing economic pressures.

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