The recent Budget included a two per cent increase on savings and property income, taking the rates to 24 per cent, 44 per cent, and 49 per cent. Jamie Morrison, an ultra-high-net-worth tax expert, stated this is a significant increase for high-net-worth individuals with substantial property portfolios and savings in the UK.
Morrison also highlighted new HMRC crackdowns announced in the Budget, which will see 200 billionaires assigned dedicated "customer compliance managers" to investigate their tax affairs. According to HMRC data from last year, the tax gap for wealthy individuals was £3.6bn, compared to £36.7bn for small businesses.
Morrison noted that other countries, including Turkey, Italy, and the UAE, are actively working to attract wealthy individuals. Examples include Milan's flat tax rate of €300,000, Dubai's zero-tax environment, and Turkey's recent low inheritance tax plans.