According to new research from Tax Experts, nearly half of business owners would consider moving their companies to another country if tax rates are raised in the upcoming Budget. This finding is based on a UK-wide survey of 500 business owners, each with an annual turnover of £5 million or more. The survey revealed that higher capital gains tax rates are a significant concern for these companies, with many owners indicating that increases in tax rates could substantially impact their profitability and future growth.

The potential for higher taxes has prompted business leaders to evaluate relocating as a way to protect their interests. Respondents highlighted that the rise in capital gains tax could reduce their investment returns, making it more challenging to attract and retain investment. Many business owners believe that moving their operations abroad would enable them to benefit from more favorable tax policies, which are viewed as essential for maintaining their competitive edge in a global market.

As the government considers changes in the Budget, Tax Experts warn that significant tax increases could drive a substantial number of companies to consider other countries with lower tax burdens, ultimately impacting the UK’s economy through job losses, reduced tax revenue, and diminished local investments. This sentiment reflects a growing awareness among UK business owners of the need for fiscal policies that support, rather than hinder, business growth and sustainability.