High-net-worth (HNW) individuals will increasingly be seeking to Corbyn-proof their finances, according to deVere Group CEO and founder Nigel Green.
The assessment from Green comes as Jeremy Corbyn confirmed the Labour party would campaign to remain in the European Union (EU), should there be a second Brexit referendum under a Conservative government.
The deVere Group CEO added: “Although Mr Corbyn has still not confirmed what his party would do with Brexit should he become British Prime Minister, there seems to be a gradual transition towards Labour becoming an out-and-out Remain party.
“This will prove to be a popular step in the right direction for huge swathes of the UK electorate. As such, Mr Corbyn’s chance of sweeping into government in the – likely – event of a general election is greater."
Green noted that this will put Britons “on notice” and, in May, he claimed that a large number of the firm’s clients were telling advisers that for their wealth, they “fear the damaging impact” of a Jeremy Corbyn-led government more than Brexit.
“Should the Brexit turmoil continue, and the Conservatives keep losing ground to Corbyn's Labour, it can be reasonably expected that a considerable amount of our clients will move their assets outside of the UK,” he added.
Now, following Labour’s announcement, Green stated this trend will pick up pace, as it suggested that Corbyn is “now more likely to secure keys to Number 10”, which will push an increasing number of HNW clients to “Corbyn-proof” their finances.
There are real concerns from these individuals that a Corbyn-led government would increase inheritance taxes, income taxes, stamp duty and capital gains taxes, potentially roll out capital controls, and slash other areas, such as pensions tax relief, Green explained.
“To counteract the damaging effects of these policies on their wealth, I believe that over the next few months, more and more of them will be actively considering established, legitimate overseas opportunities to create, build, and importantly, protect their wealth.”
The deVere CEO concluded that “rightly or wrongly”, Corbyn is perceived as a bigger threat to HNW individuals’ wealth and the economic outlook than Brexit, and they can be expected to seek alternatives in “greater and greater numbers” as the Labour leader shifts towards remain.
Subscribe to our newsletter to receive breaking news by email.