Sunday’s newspaper front pages were rife with reports that Chancellor Rishi Sunak is looking to raise at least £30bn a year to help cover the cost of massive public spending that was triggered by the Coronavirus pandemic.
The Chancellor is considering a range of possible news measures to collect the cash, including raising capital gains tax, corporation tax and income tax, slashing pension tax relief, raising fuel duty, bringing in a new online sales tax and shaking-up the inheritance tax system.
Nigel Green, CEO and founder of the deVere Group, said that high earners need to prepare for the next Budget now before it is too late.
He said: “Higher earners should expect to get a bloody nose from the Budget and should take action sooner rather than later to mitigate the burden.
“Major tax raids and relief cuts are on their way – and it is higher earners who are going to be targeted.
“Even a Treasury source admitted that the political reality is that ‘the only place you get the money is from the better-off’.
“It’s clear the Budget will deliver a considerable financial hit for higher earners.”
He continues: “As such, these people would be wise to take steps now – ahead of the November Budget - to mitigate the impact.
“They should be considering all the available and legitimate financial planning options available to them, including international options, in order to grow and protect their wealth.”
Earlier this month, a deVere Group poll revealed that six out of 10 higher earners in the UK, or those living overseas who have financial links to Britain, are concerned about the adverse impact on their assets of the 2020 Budget.
Mr Green also called upon the Chancellor to focus on long-term growth policies rather than a simple tax the rich approach to recover the country’s finances.
He said: “Mr Sunak should not try to tax his way out of the downturn – instead, he must drive long-term sustainable economic growth policies.
“Whilst this way would be more effective, it is harder to do both economically and politically, and is, therefore, unlikely to happen.”