One expert has sounded the alarm for families to make strategic financial decisions in light of the stringent measures anticipated in the forthcoming Autumn Statement.
UK families, as well as Britons living abroad, are being encouraged to take pre-emptive steps to shield their finances from the expected fiscal squeeze set to be announced in October’s Autumn statement.
Labour leader Sir Keir Starmer has admitted that the update is bound to inflict “painful” short-term impacts to secure a more stable long-term economic landscape, prompting finance experts to advise on strategies to mitigate the repercussions.
The call to action comes particularly after Nigel Green, CEO and Founder of deVere Group, cautioned both his clientele and the wider populace as Chancellor Rachel Reeves stopped short of dismissing future tax increases.
Mr Green has implored individuals to take immediate action to “act now to safeguard their wealth” in the face of evident “warning signs” indicating imminent substantial dents in household finances, anticipating a “significant tax raid”.
Green also unveiled his own insight: “Capital gains tax (CGT), inheritance tax (IHT), and pension taxes are being seen by the government as low-hanging fruit- quick and effective means to generate revenue. Yet this approach threatens to pile on pressure to numerous middle-class households, including investors and affluent individuals, who are likely to bear the brunt of an increased tax load.”
He also anticipates a significant “scramble” to review and redistribute wealth from investors following the statement and before the new measures are implemented.
However, he advised: “Don’t wait until the Budget is announced- proactive planning is key. This includes considering tax-efficient investment vehicles, rebalancing portfolios, and potentially realizing gains under the current CGT rates before any changes are implemented, for example.”
Moreover, Nigel’s forecast that high-net-worth individuals could be targeted may have a ripple effect on the UK economy. He asserted: “Faced with the prospect of increased tax burdens, many wealthy individuals are actively exploring relocation to countries with more favourable tax regimes.
“Many of these individuals already own properties abroad, highlighting their international mobility and readiness to move their tax domiciles.”
The mass departure this expert predicts could directly influence tax revenues which might in turn impact public services and infrastructure as well as altering the UK’s global reputation among potential investors and entrepreneurs.
Ultimately, Nigel advised: “The key is early action-waiting until the budget is announced could mean missing out on crucial opportunities to mitigate the impact.”
