Investors would oppose introduction of wealth tax

The majority of UK investors would be opposed to the government’s proposed introduction of a wealth tax, according to new research carried out by Butterfield Mortgages Limited (BML).

The prime property mortgage provider suggested there is speculation that the Chancellor, Rishi Sunak, could be about to introduce a wealth tax which would be calculated based on the value of an individual’s properties, pensions and assets.
BML’s survey, based on responses from 885 UK investors with portfolios worth over £10,000, found that 52% are opposed to the introduction of a wealth tax in the UK. This figure increased to 60% among those with investment portfolios worth over £50,000. 
The survey also found that 55% of investors believe a wealth tax would “dry up overseas investment” into the UK, while 35% would relocate their investments to non-UK assets if the tax was brought in. BML found that this figure increased to 41% for those with portfolios worth over £50,000.

BML CEO, Alpa Bhakta, commented: “The government is rightly looking for ways to address the public debt that has amassed as a result of COVID-19. As part of this, there is speculation we could see a wealth tax being announced in 2021. 

“There are naturally plenty of concerns about such a tax. BML’s research shows the tax could in fact drive investment away from the UK, which is not something the government wants to see. There are also practical questions regarding its implementation and whether it will simply add another degree of complexity to an already complicated tax framework.

“For now, we have to wait and see whether the wealth tax is something the government will be seriously considering in 2021. If it does come about, the consequences will be significant.”

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