This week The Telegraph reported on recent findings from the Institute of Fiscal Studies which calculates the UK tax burden to be reaching a 70 year high, prompting fears across the political spectrum, of an exodus of the mobile rich to more favourable tax jurisdictions.
Further Tax Rises Loom – Mark Davies comments
Mark Davies commented in The Telegraph that the risk of capital flight was now greater as business owners had realised they could work from anywhere in the world, in some cases earning dividends from Britain without paying a penny in tax and that Portugal, Italy and Monaco are the most popular destinations.
The report from the Institute of Fiscal studies highlights that the average amount of tax taken from a family’s earnings has risen form 18.7% in 2010 to 23.4%. Rishi Sunak, the Chancellor, hinted at the Tory conference last week that more tax rises would be needed to rehabilitate the public finances. His Autumn Budget is due to take place on 27th October.
More tax payers than ever face being pushed into higher tax brackets designed for the highest earners, as wages rise but thresholds remain frozen until 2026.
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