High net worth advised fear a Corbyn-led government

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Jul 12, 2019

A Labour-party government under leader Jeremy Corbyn is of more concern for the advised population than the ongoing impacts of Brexit, according to deVere Group.

Chief executive Nigel Green says the UK’s high net worth in particular will be looking to “Corbyn-proof” their finances.

He says: “Since the beginning of the year a large and growing number of clients are telling our 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 Labour, it can be reasonably expected that a considerable amount of our clients will move their assets outside of the UK.”

Major concerns for the advised population under a Corbyn government include increased inheritance taxed, income taxes, stamp duty and capital gains tax increases and the potential roll-out of capital controls, he adds.

Advised clients are also increasingly concerned pensions tax reliefs would face the chopping block.

Green says: “Rightly or wrongly, Corbyn is seen as a bigger threat to high net worth individuals’ wealth and the UK’s economic outlook than even Brexit.

“To counteract the damaging effects of these policies on their wealth, more and more of them will be actively considering established, legitimate overseas opportunities to create, build, and importantly, protect their wealth in the coming months.”

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