Reeves’ ‘Exit Tax’ Plan is set to be “incalculable and self-defeating” by a leading wealth advisor
Chancellor Rachel Reeves is reported to have planned a plan to impose an “exit” tax on the business assets of wealthy individuals who are leaving the wacklash from the financial sector, warning investors.
The proposed measure – described as a “resolve money” charge Treasury insiders reportedly believe it could raise nearly $2 billion in revenue.
But nigel green, CEO of the DEVEE group, one of the most private financial and asset management firms, called the proposal “DuCHLLLY AND BEHAVIOR.”
“The government seems to have the will to make the UK a growing place for wealth creators,” Green said. “The introduction of an exit tax will accelerate the exit of entrepreneurs, business owners and investors who suddenly feel penalized for their success.”
Green warned that the policy would damage Britain’s competitiveness at a critical time and could cost the Treasury more.
“This policy will not only fail to raise reasonable income; it will destroy confidence, reduce investment and, ultimately, make short-term tax sales more expensive,” he said.
The firm is already seeing a sharp rise in wealthy people reiterating its exposure in the UK, he added, amid fears the country is no longer friendly to business or business.
“Investors and business leaders are already looking at the UK with increasing caution. They are reinvesting a lot of money in the gap that arouses the desire to renew and use it to attract international wealth, not to persuade that it aims to punish it.”
Reeves’ expected budget later this month comes as the UK faces slower growth, weak business investment and falling consumer confidence. Analysts have warned that the chancellor is set to oversee the fastest tax increase in more than half a century.
Green argued that adding an “outgoing charge” to that mix would send a damaging signal to global markets.
“That alone would stretch global capital, but combining it with an exit case would send a message that Britain has to offer competition,” he said. “The result would be a further erosion of confidence and a strong migration of rival currencies.”
The DEVEE chief said the proposal reflects a short-term mindset, driven by politics that risks promoting long-term prosperity.
“The elimination of the non-domestic regime, rising taxes and the highest tax burden in decades has already given you confidence,” he said. “An exit tax would be the final signal that the UK is no longer open to wealth, investment or ambition.”
Green urged the chancellor to focus on policies that attract netizens rather than penalize success.
“Prosperous economies are built by increasing growth, not sapping ambition. Deposits are reverse economics,” he said.
He added that while the exit tax may be politically motivated, it puts at risk “the wealth of history, talent” as the capital moves ahead of rivals such as Dubai, Singapore and Switzerland.
“Some financial institutions are already benefiting from the depth of the UK’s self-destructive policy. The country cannot continue to send away its most productive citizens,” it warned.
Green also warned many local residents and business owners to review their resident and succession plans before any policy is put in place.
“This proposal increases the urgency of businessmen operating around the world to get expert advice before restrictions or taxes are imposed,” he said.
He concluded: “Instead of chasing those who decide, as their right, to leave, the focus should be where there is more humility to invest – To ensure that Britain remains a place where ambition is rewarded, not punished.”
