Four in 10 business owners would consider leaving the UK if Budget delivers tax rises, new research reveals
A significant proportion of UK business owners are prepared to move abroad if the chancellor’s upcoming Autumn Budget introduces further tax rises, according to new research commissioned by professional services firm S&W.
The UK-wide survey of 500 business owners with turnovers of £5m upwards reveals that 41% of business owners would consider moving their business overseas if the Autumn Budget delivers unfavourable tax changes[1].
S&W’s The BOSS (Business Owners Sentiment Survey) report, which is published today (5 November), also reveals:
- 42% of business owners surveyed are concerned1 about the likely impact of the Autumn Budget on their business
- 42% of business owners would consider leaving the UK if a wealth tax is introduced1
- 42% would consider moving their business abroad if Capital Gains Tax rates are increased1. Additionally, 42% say they would be deterred from starting a new business if CGT rates rise1
- 40% would consider relocating if Inheritance Tax (IHT) reliefs on gifting assets are restricted1
Announcements in the last Budget have already prompted business owners to reconsider their future in Britain, according to S&W’s research. 40% of those surveyed are considering leaving the UK due to the proposed extension of inheritance tax (IHT) to pensions in April 20271, while 42% cite cuts to business property and agricultural reliefs as key drivers of their concern1.
Other key findings in The BOSS report include:
- 37% of business owners surveyed expect to make redundancies in the next 12 months[2]
- 39% anticipate a hiring freeze2
Commenting on the findings, Toby Tallon, tax partner at S&W said: “Our research sends a clear message to the chancellor: further tax rises on risk-takers and wealth creators could drive more of the UK’s most successful businesses and their owners out of the country. Business owners are not just concerned, they’re ready to act.
”The chancellor must put business owners at the heart of the next Budget. We need bold policies that give entrepreneurs confidence and keep Britain open for business while staying fiscally responsible.”
1 ‘Somewhat agree’ and ‘Strongly agree’ answers combined.
2 ‘Somewhat likely’ and ‘Very likely’ answers combined.