The majority (55%) of high net worth individuals (HNWI) feel that the UK is not supportive of wealth creation or creators, a study from Wealth Club has found.

Its research comes amid concerns that HNWIs are planning to leave the UK, with many worried that potential tax changes in the upcoming Budget could drive further exodus from HNWIs.

Wealth Club also revealed that 42% of HNWIs believed the UK was not an attractive place to set up a business, while 31% said they felt more inclined to leave the UK for financial reasons compared to 12 months ago.

More than four in five (81%) HNWIs felt that the UK was in a worse economic state than it was five years ago, according to the research.

A freedom of information request from Wealth Club found that the top 100 taxpayers in the UK collectively paid £3.9bn of income and capital gains tax (CGT) in 2022/23, an average of £39m each, while the top 1,000 taxpayers each paid an average £10.4m in tax.

Therefore, the top 100 highest earners paid 1.5% of HMRC’s annual tax receipts, while the top 1,000 paid more than 4% of the annual tab.

Founder at Wealth Club, Alex Davies, said: “The Autumn Budget is just over a week away and the Chancellor has stated repeatedly that those with the broadest shoulders should carry the biggest tax burden, but these numbers demonstrate just how reliant the tax system already is on a very small number of individuals.

"But the ultra-wealthy are a mobile bunch, proven by the fact that an estimated 9,500 millionaires are expected to leave the UK this year. If just the top 100 taxpayers decided to move overseas that would rise to £3.9bn less revenue for HMRC, and if the top 1,000 taxpayers migrated out of the UK, that figure would rise to £10.4bn less in receipts.

"That’s not just this current tax year, but also each subsequent year, leaving huge holes in the country’s finances and draining the economy of the entrepreneurs and investors who start and support young businesses.

"This is doubly concerning when the UK already has an image problem. Even before the last election wealthy investors thought the country was an unappealing place to start a business, with a culture that’s unsupportive of wealth creators and high levels of taxation.

"Changing this group’s perception of the UK and getting the balance right, should be a key goal for the Chancellor. The message is clear for politicians when deciding future tax policy – tread very carefully or the geese may take flight."

---