Brexit uncertainties are a worry, but the prospect of a change in government and far higher taxes on HNW individuals also gives cause for concern.

A brokerage firm's survey of 619 of its own members said 40 per cent of them are prepared to leave the UK should taxes rise significantly.

The survey, by Wealth Club, comes as the UK political world debates how the country will quit the European Union, and amid speculation about the kind of tax regime that would be brought in if Labour Party leader Jeremy Corbyn, seen as on the hard left, pushes taxes up on high net worth individuals (HNWIs) if his party wins power at the next election. Opinion polls have shown Labour either matching or slightly trailing the ruling Conservative Party. 

Almost three in four (73 per cent) of HNWls think taxes will increase in the next 12 months, however, and around 84 per cent of wealthier individuals think they will pick up the bill for future increases if they come to pass. If taxes rise, nine in ten HNWIs fear how these will hit their wealth, and of this group 17 per cent say they are extremely worried. 

Some 43 per cent think an increase in taxes is one of the biggest threats to their wealth, but the biggest threat cited was a possible change in government (69 per cent). Reflecting further on UK taxes, the majority (67 per cent) of HNWIs think income tax is the fairest tax, and 42 per cent think the rate at which income tax is charged is about right. Inheritance tax fares worse – 73 per cent think it is unfair or grossly unfair and 85 per cent consider the rate too high.

“The UK’s top earners paid a total of £54.3 billion ($72.4 billion) in income tax last year,” said Alex Davies, chief executive and founder of Wealth Club. “They are now bracing themselves for further tax rises and have no doubt as to who will foot the bill. Whether or not they will pay up and shut up remains to be seen. However, the fact that 40 per cent would consider moving abroad if tax rises further, perhaps suggests that the goose can be squeezed no more. If 40 per cent of wealthier individuals really did leave the country £20 billion could be lost in income tax revenues alone.”

Davies added: “If nearly half the people consider a tax grossly unfair, as is the case with IHT, then there is a real problem. Any attempt to increase inheritance tax will be hugely unpopular and politically suicidal for the party that tries to introduce it. “The need for tax revenue is not going to disappear – and as our survey suggests, the majority of wealthier individuals expect taxes to rise this year.”

Wealth Club carried out the survey during the start of June 2018. Wealth Club is a UK broker of tax-efficient investments. It provides HNWIs and sophisticated investors with researched information on these investments.