Reeves' 'exit tax' plan branded "reckless and self-defeating" by leading wealth adviser

""The government seems determined to make the UK an increasingly unattractive place for wealth creators," Green said. "The introduction of an exit tax would accelerate the exodus of entrepreneurs, business owners and investors who already feel punished for their success." Green warned that the policy would damage Britain's competitiveness at a critical time and could cost the Treasury more than it raises."

""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," he said. The firm has already seen a sharp rise in wealthy individuals reassessing their exposure to the UK, he added, amid fears the country is no longer friendly to business or enterprise."

A reported plan would impose a 20% "exit tax" as a settling-up charge, levying capital gains tax on business holdings of wealthy individuals relocating to low-tax jurisdictions. Treasury insiders estimate the measure could raise around A32 billion. Nigel Green of deVere Group called the proposal reckless and warned it would accelerate an exodus of entrepreneurs, business owners and investors who feel punished. He said the policy could damage Britains competitiveness, destroy confidence, reduce investment and ultimately cost the Treasury more in lost economic activity than it raises. The firm reports rising reassessments of UK exposure amid fears the country is unfriendly to business, ahead of an expected Budget amid slowing growth and weak investment.

Read at Business Matters