High earners 'leaving UK' over capital gains tax fears

Entrepreneurs and top earners are selling up or leaving the UK due to fears the Labour government will announce an increase in capital gains tax (CGT) in the autumn Budget, experts have warned.

- JABED AHMED

Speculation on the Budget’s content has continued after the prime minister, Sir Keir Starmer, said that “those with the broadest shoulders should bear the heavier burden” during a speech last week. And with Labour vowing to avoid rises in income tax, national insurance and VAT, many believe chancellor Rachel Reeves will look to raise much-needed cash from hikes in inheritance tax and CGT on 30 October.

Capital gains tax is a levy on any profit made on the sale of an asset, such as shares or buy-to-let properties. It is currently set at between 10 and 28 per cent. Ms Reeves has declined to rule out a potential increase in the tax, saying she will “write a Budget two months ahead of delivering it”.

But Tom Adcock, a former HMRC tax inspector and tax partner at Gravita, told The Independent a number of entrepreneurs, high earners and wealth generators are already choosing to leave the UK.