Rich Should Expect a 'Bloody Nose' In The Budget Says deVere Group CEO

AUTUMN BUDGET PREDICTIONS - Nigel Green, CEO and founder of deVere Group is warning the rich that the Chancellor will be after their cash in the buget. 

Higher earners should take steps now to mitigate the considerable financial hit they could face from Chancellor Rishi Sunak’s “major tax hikes,” warns the boss of one of the world’s largest financial advisory and fintech organisations.

The warning from Nigel Green, CEO and founder of deVere Group, comes following reports that Mr Sunak is looking to boost taxes in an effort to pay for Britain’s coronavirus recovery.

According to the front pages on Sunday, the Treasury is drawing up fresh plans to raise at least £30bn a year to help cover the cost of massive public spending triggered by the pandemic.

The blueprint says the Chancellor is considering a range of possible new measures to collect the cash, including raising capital gains tax, corporation tax and income tax, slashing pension tax relief, raising fuel duty, bringing in a new online sales tax and shaking-up the inheritance tax system.

Mr Green says: “Major tax raids and relief cuts are on their way – and it is higher earners who are going to be targeted.  

“Even a Treasury source admitted that the political reality is that ‘the only place you get the money is from the better-off’.

“It’s clear the Budget will deliver a considerable financial hit for higher earners.”

He continues: “As such, these people would be wise to take steps now – ahead of the November Budget - to mitigate the impact.

“They should be considering all the available and legitimate financial planning options available to them, including international options, in order to grow and protect their wealth.”

Earlier this month, a deVere Group poll revealed that six out of 10 higher earners in the UK, or those living overseas who have financial links to Britain, are concerned about the adverse impact on their assets of the 2020 Budget.

Mr Green continues: “Mr Sunak should resist the simple ‘soak-the-rich’ measures.

“He should not try to tax his way out of the downturn – instead, he must drive long-term sustainable economic growth policies.

“Whilst this way would be more effective, it is harder to do both economically and politically, and is, therefore, unlikely to happen.”

The deVere CEO continues: “Higher earners should expect to get a bloody nose from the Budget and should take action sooner rather than later to mitigate the burden.”

ABC Comment: 1 April 2020. The charge to Corporation Tax and the main rate will also be set at 19% for the financial year beginning 1 April 2021 not reduce to 17% as had been talked about. 1 April 2020. The charge to Corporation Tax and the main rate will also be set at 19% for the financial year beginning 1 April 2021. Ordinary folk pay around 40% in Tax and NI. An average worker pays £11,000 a year in tax to the Government - around £30 a day. ... National Insurance and income tax account for the remaining £6,000, with the total bill equating to 40pc of average earnings.

Looking at a new job? This calculator should assist:

ABC Comment, have your say below: