The head of a major global financial firm has issued a stark warning against government plans to impose an exit tax on wealthy individuals leaving the UK, branding the potential move as "reckless and self-defeating."
A 'Settling-Up Charge' to Fill Fiscal Hole
Chancellor Rachel Reeves is reportedly considering the introduction of a 20 per cent "settling-up charge" on business assets for those relocating from Britain. This rate would align with the current Capital Gains Tax (CGT).
The policy, anticipated to be unveiled in the November 26 Budget, is estimated to raise approximately £2bn. This comes as the Treasury faces the significant challenge of filling a fiscal black hole that could reach up to £35bn.
Wealth Manager Warns of Lasting Damage
Nigel Green, the CEO of financial advisory and asset management firm DeVere Group, has been vocal in his criticism. He argues that such a tax would inflict lasting damage on the country's economic competitiveness at a critical time.
"The government seems determined to make the UK an increasingly unattractive place for wealth creators," Green stated. "The introduction of an exit tax would accelerate the exodus of entrepreneurs, business owners and investors who already feel punished for their success."
Exit Tax Would 'Destroy Confidence'
Green contends that the proposed levy would fail to achieve its revenue goals and would ultimately cost the Treasury far more in lost long-term economic activity than it could ever recoup. He highlighted that investors are already viewing the UK with increasing caution.
"They're redirecting capital to economies that reward ambition and provide stability. Britain should be working to attract international wealth, not signalling that it intends to penalise it," he added.
The firm has reported a significant rise in both domestic and global investors re-evaluating their exposure to the UK. This trend is driven by a growing perception that the government is unfriendly towards private capital.
This warning is supported by data. An analysis of Companies House records reveals that 3,790 company directors removed Britain as their official country of residence between October 2024 and September 2025. This figure marks a steep increase from the 2,712 directors who did so in the same period a year earlier.
High-profile departures since last autumn's budget include:
- Bart Becht, former boss of Reckitt Benckiser
- Mark Makepeace, founder of FTSE Russell
- Riccardo Silva, backer of AC Milan and Miami Football Club
Green concluded that a combination of factors, including the abolition of the non-dom regime and rising corporate and personal taxes, has already eroded confidence. "An exit tax would be the final signal that the UK is no longer open to wealth, investment or aspiration," he said. "The Chancellor should be working to attract entrepreneurs and innovators, not creating new obstacles."
City AM has contacted the Treasury for comment.
