Capital gains tax must be paid by business founders who leave UK, Reeves told

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The proposal for an 'exit tax' has been made in a new report from a group of academics

The UK should have an ‘exit tax’ on successful people in business who make gains in the country and then emigrate, a report says.Academics from the Centre for the Analysis of Taxation argue this incentivises successful business people to emigrate, in order to cut their tax bill.

It also said the UK could levy the tax without affecting most emigrants, as the top 10 wealthiest leavers each year account for 73 per cent of potential revenue, so the Government could afford to exempt anyone with gains below £1m., they could follow Australia, Canada and many other countries by taxing the gains of people who leave. It’s a policy choice to let them emigrate tax free.”

The report said that the UK has not done so previously because European Union free movement rules would have rendered it ineffective, but this obstacle no longer exists now that the UK has left the EU.

 

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