“If we wish to have a thriving economy and country which is welcoming to wealth creators and, by definition, the wealth they create, we need to first reduce instability and cease endless tax policy changes, second ensure we encourage people to establish themselves in the UK, and third ensure people wish to remain in the UK,” Sophie Dworetzsky, head of wealth planning UK at Lombard Odier, said in a note.

Dworetzsky expects personal tax rises to be on the cards in the Autumn Budget. “Suggestions include a wealth tax, a so-called mansion tax (which seems disingenuous, to say the least, in areas such as London), further increases in capital gains tax and further changes to inheritance tax,” Dworetzsky said.

“The abolition of the non-dom regime, combined with mounting uncertainty over future tax policy, is already driving wealth creators out of the UK,” Goddard continued. “At Lombard Odier, we are seeing this first hand, as are many of the professional advisors we work with. For entrepreneurs, the shift to a residence-based inheritance tax (IHT) system, coupled with a 40 per cent rate and reduced reliefs on business assets, is prompting many to reassess whether the UK is the best place to build and pass on their companies.”

“Meanwhile, the new Foreign Income and Gains (FIG) regime, intended to attract talent, risks discouraging investment due to its short-term nature, and remains uncompetitive versus jurisdictions such as Italy,” Goddard said. “At the same time, domestic business sentiment has noticeably weakened in the last 12 months. Entrepreneurs tell us they are cutting jobs, delaying investment and scaling back R&D due to rising costs, higher National Insurance contributions (NIC) and a volatile tax environment. For a country that wants to lead in innovation and growth, this is the wrong direction of travel.”

Goddard outlined three steps the Chancellor could take to turn the tide on this:

-- Supercharging early and mid-stage investment with bold tax incentives that reward long-term patient capital, going beyond existing Venture Capital Trusts (VCT) and Enterprise Investment Scheme (EIS) support;

-- Mobilising institutional capital at scale with a clearer mandate for state-backed investment bodies to anchor co-investment and fuel later-stage growth; and

-- Reviving the UK listings market through targeted, pro-IPO incentives, from entrepreneur reliefs to stamp duty changes, would help London compete as a global listings venue.

“Above all, the Chancellor needs to ensure that the UK stops signalling instability to the rest of the world,” Goddard said. “Policy volatility is toxic for global capital. A more balanced, predictable approach to taxation, starting with meaningful IHT reform, would help keep wealth, investment and talent in the UK rather than pushing it offshore.”

“This budget is an opportunity to show the world that Britain is once again serious about innovation, enterprise and growth,” Goddard added. See more budget-related commentary here and here.