Tax
Rise In Wealthy Individuals Looking To Move Assets Outside UK, Ahead Of Autumn Budget – Canaccord
As UK chancellor of the exchequer Rachel Reeves is poised to release the Autumn budget today, Canaccord Wealth, a UK integrated wealth manager, discusses the rise in the number of wealthy individuals looking for financial planning outside the UK mainland.
Following the general election this year and after UK chancellor of the exchequer Rachel Reeves said that the government would have to increase taxes in the October budget, this week Canaccord Wealth has reported a 56 per cent jump in wealthy individuals looking for financial planning outside the UK mainland.
Canaccord Wealth said it has seen a significant increase in interest from wealthy individuals considering moving their assets to lower tax regimes. It reports a 56 per cent increase in people specifically searching for its services in Guernsey, the Isle of Man, and Jersey.
The number of page visits from web searches specifically for Canaccord’s services in the UK’s Crown Dependencies has grown steadily month-on-month following Labour’s landslide victory, from 332 in May 2024 to 518 in September 2024 – an increase of 56 per cent, the firm said in a statement.
“The messaging from the UK government has been clear over the past few weeks and this has caused concern for our clients. We have welcomed the chance to have conversations and provide reassurance, but we are seeing high net worth individuals starting to explore other locations for their wealth,” Matt Philips, director, wealth planning for Canaccord in the UK, said.
“It’s our role to help our clients navigate the complexities of the macroeconomic environment and achieve their long-term financial goals. However, the data backs up what we are hearing face-to-face. The number of enquiries we are receiving – so called ‘intent searches’ online – demonstrates people are worried and are exploring their options,” he continued.
“It’s clear from the data that people are concerned. We are also hearing this in the conversations we are having with professional partners and referrers who say there has been a spike in activity among those on the UK mainland considering becoming a tax resident in the Crown Dependencies,” Andy Finch, CEO of Canaccord Wealth’s International business, covering the UK Crown Dependencies, said.
“At Canaccord Wealth, we serve clients across the UK and Crown Dependencies, so we have the capability to support [them] – whatever happens in Wednesday’s budget,” he added.
The statement comes at a time when speculation about rising taxes on inheritance, capital gains, savings and investment, combined with a scheduled abolition of the resident non-domicile regime, has prompted talk that the UK will experience a wealth exodus.
Inheritance tax (IHT) is currently charged at 40 per cent above a threshold on the estate of a deceased person, currently set at £325,000 ($422, 000). But Reeves is expected to make it more difficult to gift money and assets, such as farmland tax free, or scrap business relief, which enables an individual to pass on a company or shares if it is unlisted with 100 per cent tax relief. Currently, no IHT is due on gifts if they are made by a person who lives for more than seven years after the gifts were made but this could be extended to 10 years. It looks as though capital gains tax (CGT) is going up too, with the only question being how high. See more commentary here and here.