72% of the UK’s Top Earners are Considering Emigration
According to a recent report in Emirates 24/7, Dubai may soon witness an influx of UK professionals.
With the UK’s proposed higher tax rates disheartening Britain’s top tier workers, nearly three quarters of the nation’s biggest earners might be tempted to leave the UK and start afresh abroad.
Recently Chancellor of the Exchequer George Osborne announced that the higher rate of tax threshold will increase for the first time in April. This hike will be followed by successive small increases over the next few years.
For those who have worked their way to the top and are now earning mega-bucks this tax increase could make a real difference to their incomes.
Consequently, the results of a recent survey conducted by the deVere Group showed that an increasing number of career-driven British nationals are turning up in the UAE and using the region to protect their higher earnings and advance career ambitions. The UAE famously has a no-tax policy, and the prospect of a higher standard of living and more temperate climate are also attracting foreigners.
The deVere Group survey revealed that 72 per cent of the UK’s biggest earners are either seriously considering, thinking about, or tempted to move overseas – with personal taxation being the biggest motivation. Dubai and Abu Dhabi came out as the most popular UAE destinations for British expats.
Nigel Green, CEO of the deVere Group, released the following statement with the results of the survey; ‘The decision announced in the Budget to raise the threshold will drag yet more hardworking British people into the higher rate tax band. There’s already been an extra 1.4 million UK taxpayers pulled into this band over the last three years, with around 4 million paying this rate today. [The number may] reach 5.3 million by 2016. As such, the so-called ‘higher’ band increasingly looks more like a ‘regular’ band in the UK. It can no longer conceivably be seen exclusively as the tax bracket of the rich’.
Green continued; ‘The one per cent announced in last week’s Budget may not be a huge increase but it is likely to be received as another blow by middle and top earners [...] I suspect that this could all trigger more of Britain’s top achievers to consider a move abroad to safeguard and maximise their money in order to give themselves and their families the best lifestyle opportunities.’
However, while moving overseas might seem like the solution to those British workers hoping to break free from the ‘soaking’ nature of UK taxes, do UAE nations like Dubai really need or want another influx of foreign workers?
In some Middle-Eastern nations significant steps have been taken to help local workers reclaim employment opportunities, so losing some of the nation’s most well paid positions to foreign nationals may not go down too well!
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