Reeves considers ‘exit tax’ for rich Britons fleeing UK

Mansions and high-value houses also in chancellor's sights

- By KATE DEVLIN, WHITEHALL EDITOR

Extremely well-off Britons leaving the UK for tax havens face having to pay a charge as they depart under plans being drawn up ahead of this month's crunch Budget.

At the same time, Rachel Reeves is reportedly considering bringing in new higher bands of council tax to target the owners of expensive homes.

The chancellor is said to be considering slapping a 20 per cent “settling-up charge” on business assets left in the UK as she tries to fill a multibillion-pound hole in the nation's finances.

But shadow justice secretary Robert Jenrick hit out at what he said was a “crazy” idea that would “just see wealth and wealth creators sprint for the door ... We need more entrepreneurs, not fewer!

Economists have repeatedly warned Ms Reeves that a combination of Labour U-turns, higher borrowing and sluggish economic growth means she must raise taxes or tear up her flagship borrowing rules in the Budget. And Ms Reeves herself has said that higher taxes on the wealthy will be “part of the story” of her highly anticipated Budget later this month.

It is thought the move would raise about £2bn and bring Britain in line with most other G7 countries, which - apart from Italy - all already have their own “exit taxes”.