US EditionLabour accused of unleashing ‘stealth tax’ on pensions
- The UK government has chosen to keep income tax thresholds frozen through 2028, resulting in fiscal drag that raises taxpayers' liabilities by pushing them into higher brackets without officially increasing tax rates.
- This policy causes more individuals, including 1.9 million workers and many pensioners, to move into higher tax brackets despite stagnant purchasing power, driven by frozen thresholds and inflation.
- Financial advisers report a 36% rise in relocation consultations, especially in south-east England, as middle- and higher-income taxpayers seek lower-tax countries like Italy, Portugal, Switzerland, and Dubai.
- Nigel Green, CEO of deVere Group, pointed out that policymakers are mistakenly assuming individuals will remain passive as they are moved into higher tax brackets, while in reality, many are responding by seeking ways to relocate abroad or adjust their financial arrangements to avoid increased tax burdens.
- This growing fiscal drag may reduce government revenue projections and risks political backlash as affected workers might relocate, despite government claims of stabilizing public finances and economic recovery efforts.
7 Articles
7 Articles
Chancellor's 'stealth tax bombshell' might not deliver £8.9bn as entrepreneurs prepare to flee
Labour’s so-called “stealth tax bombshell” might not deliver the £8.9bn windfall projected, as rising numbers of British professionals and entrepreneurs will be preparing to leave the country in search of… The post Chancellor’s ‘stealth tax bombshell’ might not deliver £8.9bn as entrepreneurs prepare to flee appeared first on London Business News
UK stealth tax hike risks exodus of high earners, deVere warns
A growing number of British professionals and entrepreneurs are preparing to leave the UK to escape what has been branded Labour’s “stealth tax bombshell”, according to independent financial advisory firm deVere Group. The warning comes as new figures suggest nearly two million workers will be dragged into higher tax brackets by the end of the decade, due to the continued freeze on income tax thresholds. But deVere says those projections could f…
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