UK Should Tax Wealthy Exiting the Country, Economists Say
- Proposal from CenTax economists would help fill budget hole
- Levy seen as more effective than capital gains overhaul
This article is for subscribers only.
Senior economists and think tanks have urged the Chancellor of the Exchequer Rachel Reeves to introduce an “exit tax” on the wealthy to raise as much as £500 million ($650 million) a year and discourage departures.
Rich entrepreneurs and investors in the UK are currently able to move overseas for tax purposes before cashing in capital gains, with as many as three quarters re-domiciling in havens where they pay no tax at all, according to a report from the Centre for the Analysis of Taxation. Such a policy – which Australia, Canada and the US already have – would reduce incentives for wealthy individuals to emigrate in response to other tax changes, the group said.