Arbuthnot Latham chief warns Labour government would result in people moving abroad
The chief executive of Arbuthnot Latham has warned that a Labour government would result in people upping sticks and moving abroad.
James Fleming said the introduction of a mansion tax and the removal of non-dom status would prompt the private bank's clients to leave Britain to avoid the increase in taxes.
Speaking to the Telegraph, the chief executive said he heard clients saying they will "have to leave the country" if Labour comes to power.
"It will slow people coming in [to the UK] and it may cause some people to leave, those more heavy-duty policies," he continued.
Approximately 20% of Arbuthnot's clients are non-domiciles - UK residents who currently earn money abroad without paying tax on it.
Fleming said: "[Scrapping non-dom status] is the main concern, but also the mansion tax is quite heavy duty for people who have houses in central London.
"That’s on their minds and, I think, a general view on the economy that perhaps some of these policies will interrupt the progress the economy’s made over recent years."
Labour leader Ed Miliband has also proposed increasing the top rate of income tax to 50p if his party is elected to power in Thursday's vote.
Flemming added: "There’s a general nervousness around the international client community, a hesitation around some of the proposed policies, and they will react accordingly. A well-advised client will always have options available to them and what this might do will be to accelerate one or two of those options."