Budget to send 25,000 top tax-payers abroad - Spear's Magazine

Budget to send 25,000 top tax-payers abroad

Research from thinktank the CEBR forecasts budget tax increases on those earning over £100,000 will reduce government revenues by £800 million and cause some 25,000 high-end taxpayers to go into tax exile.

Research from thinktank the CEBR forecasts budget tax increases on those earning over £100,000 will reduce government revenues by £800 million and cause some 25,000 high-end taxpayers to go into tax exile.

Prior to the Pre-Budget Report in November, the CEBR estimated that the likely 45 percent tax rate on incomes over £150,000 a year would cost the economy 35,000 jobs and over a 10 year period cost the country £2 billion in revenues.

The CEBR has now made a provisional assessment of the impact of the tax rises for the rich contained in the Budget, extrapolating from their November analysis. The revised forecasts take into account three of the measures announced in the 2009 Budget.

Its provisional calculations suggest that if these were implemented, over 3 years there would be a loss in UK jobs building up to 140,000; a loss in GDP in the City of London of 3 percent and a loss in tax revenues for the government of £800 million a year. About 25,000 high end taxpayers would be likely to shift tax regimes, with the low tax cantons in Switzerland like Zug the likely largest gainers.

For further details, visit thewealthnet



 

FOLLOW US ON