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 fall short — because many of those affected are already plotting their exit.
“There’s a major assumption at play here — that people will simply accept being pushed into higher brackets without taking action,” said Nigel Green, deVere’s CEO. “That’s not what we’re seeing. On the contrary, the appetite to move abroad and legally restructure finances has soared since Reeves’ first Budget and the momentum is not slowing.”
The Office for Budget Responsibility (OBR) has estimated that fiscal drag — where inflationary wage growth pulls more people into higher tax bands — will generate £8.9 billion for the Treasury. But Green suggests that forecast overlooks a critical factor: mobility.
“Relocation is no longer the preserve of the ultra-wealthy. Remote working, global hiring and dual citizenship have significantly lowered the barriers,” he said. “We’re now seeing more middle-income professionals considering their options abroad, particularly in higher cost regions like the south-east.”
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