Wealthy families plot exodus as Labour's school fees tax sparks anger

"A quarter of Britain's richest families are weighing up leaving the country as fears mount over Labour's tax raid on private schools and speculation of further levies in next month's Budget. A new survey of high-net-worth individuals by wealth manager Saltus reveals widespread disillusionment among affluent households, with VAT on private school fees cited as a key factor driving many to consider a move abroad. The findings underline how sharply confidence has deteriorated among wealth creators, investors and business leaders since last year's record tax-raising Budget."

""Whether it's capital gains tax, income tax or inheritance tax, high net worth individuals are braced for further changes at the autumn Budget given the Chancellor's limited fiscal room for manoeuvre," he said. "This cohort are the wealth creators, investors and employers who drive economic growth. If their confidence is undermined by continual uncertainty, that has consequences for everyone.""

A Saltus survey of high-net-worth individuals shows rising disillusionment among affluent households, with VAT on private school fees a major driver of emigration consideration. The survey defines high-net-worth individuals as those with at least £250,000 of investable assets. One in eight respondents said Britain is no longer a good place to start a business, 16% objected to inheritance tax reforms and 14% said the UK is less attractive for raising a family. Almost half of previous Labour voters now regret that vote because of the private-school VAT; one in seven wealthy parents cited it as a reason to consider leaving, and one fifth have already withdrawn children from former schools. Saltus warns further autumn Budget tax changes could further undermine confidence among wealth creators and employers, risking broader economic consequences.

Read at Business Matters