UK Wealthy Propose Tax Changes Amid Budget Plans

British Chancellor Rachel Reeves is considering significant tax increases in her upcoming budget, aiming to raise up to £40 billion to fund public services. Reports suggest that aligning capital gains tax (CGT) with income tax could generate an additional £14 billion, while reforming inheritance tax could yield another £1 billion. Amidst calls from a group named Patriotic Millionaires for higher taxes on the wealthy, some business leaders express concerns that such moves could drive wealth creators out of the UK, with surveys indicating that one in seven would consider relocating. Conversely, proponents argue that a fairer tax system is essential for societal health and future economic growth. Meanwhile, ultra-rich non-doms are advocating for an Italian-style flat-tax regime to protect their status from potential reforms that threaten their tax advantages. The upcoming budget announcement on October 30 is poised to have significant implications for the UK’s fiscal landscape.