Take it from a tax adviser for the ultra wealthy, this Budget did damage

Jamie Morrison, a tax adviser for the ultra-wealthy, contends that Chancellor Jeremy Healey's recent Budget has been detrimental to Britain's wealth creators. Although some criticized the Budget for being "thinly spread," lacking significant tax hikes, Morrison argues that it has had a substantial impact on wealth generation. Instead of imposing more severe measures, Healey chose to incrementally raise taxes on high-income earners through a 2% increase on savings and property income, raising rates to 24%, 44%, and 49%.

This seemingly modest change can result in hundreds of thousands, if not more, for those with substantial property holdings and savings in the UK, namely high-net-worth individuals (HNWIs). The announcement of a more focused HMRC crackdown on billionaires, with dedicated compliance managers assigned to 200 wealthy individuals, adds to the unwelcoming atmosphere for potential investors.

The disparity in resources allocated for targeting the wealthy versus small businesses is evident, with HMRC dedicating £300m to wealthy compliance activities and only £850m to small business tax gap activities. This disparity suggests that the government is unevenly targeting tax evaders, further driving wealth creators away. Morrison points to other countries, like Turkey, Italy, and the UAE, which are aggressively courting HNWIs with attractive tax rates, favorable visa programs, and low inheritance taxes.

The UK's failure to match these incentives has left many of Morrison's clients seeking better opportunities abroad. He concludes that while the government needs to raise revenue, it should do so in a manner that retains rather than alienates its wealthiest citizens, as the current approach is pushing billions of pounds out of the country.