Brexited.London – higher tax burden for UK’s wealthy as international money leaves country
Brexited.London – Intermediaries in the property and private wealth communities believe Brexit will result in fewer international high net worth individuals choosing London as their home resulting in a greater tax burden on wealthy UK individuals.
That is the message from a survey of intermediaries attending a series of three lectures exploring life in London post-Brexit hosted by the law firm Collyer Bristow.
The Collyer Bristow Brexited.London lectures were held throughout March as the UK headed towards the first 29 March departure date and focused on property, arts and wealth management markets.
Key findings from the Collyer Bristow Brexited.London lectures survey are:
- 57% believe Brexit will have a negative impact on the UK.
- 66% believe Brexit will have a negative impact on their own personal financial position. Just 4% believe it will have a positive impact.
- Bankers and those working in financial services are more pessimistic around Brexit than those in the property industry.
- 70% believe London will see a sharp decline in the number of international high net worth (HNW) individuals calling London home
- 56% believe UK domiciled HNW individuals will have to shoulder a greater tax burden as a result.
- 41% believe London residential property will still show a strong return over the next three years. However, a close 32% believe property will not deliver strong returns at all.
- 64% believe that it will take London prime residential market between three and five years to reach pre-2016 referendum levels of growth and returns.
Peter Daniel, Partner in the Tax and Estate Planning team at Collyer Bristow said:
“London is one of the world’s gateway cities and continues to attract considerable investment from private wealth. Its high standard of living, world-class education system, legal system and, Brexit aside, our stable political environment will continue to put London top of the list of global cities for private wealth.
“The shape of our departure from the EU is still yet to be decided and that has created uncertainty and opportunities. International private wealth takes the form of patient capital, making investments over long periods of time. Despite the current upheaval, London will continue to benefit.”
Kindly shared by Collyer Bristow LLP