Three years after Britain’s complete withdrawal from the European Union (EU), the move is interpreted as a move of concern about uncertainty as tax revisions and left-leaning changes to the rich are certain.
Some predict that nearly 10,000 wealthy people will leave the UK this year. This is the most prominent figure among developed countries.
An American investor who moved to the UK several years ago for investment purposes decided to leave the UK this year. The trigger was the policy of strengthening taxation on the wealthy released by the ruling Conservative Party.
The UK has operated a tax system that exempts foreign residents from taxation under certain conditions. This system has long been a policy that the opposition Labor Party has insisted on abolishing. Ahead of the general election, the Conservative Sunak administration preemptively announced the abolition of the system in March.
With the party already certain to take power, it decided to move after reviewing its policies. After reviewing several candidate sites, it chose Italy with a cap on foreign income taxation. “The Labour Party is really going to hurt the economy,” he said. Alec Marsh, a British author, pointed out that “the rich are already voting with their feet.”
British consultancy Henry & Partners predicted a net outflow of millionaires from the UK to reach 9,500 in 2024. This is more than double last year, the second-highest number after China.
The Labor Party is pledging to impose VAT, which is exempted from private school tuition. Although the proportion of expenditure is small for the wealthy, the possibility of moving in a policy direction that can be considered as ‘preferential treatment for the rich’ seems slim.
EJ SONG
US ASIA JOURNAL
