Onerous UK taxation spurs offshore property boom

Wealthy UK individuals are fleeing in droves to escape an onerous taxation system, according to new research.

The finding, by offshore tax firm the Sovereign Group, also reveals the exodus is fuelling a mini property boom in offshore jurisdictions, according to tax-news.com

Property prices in Gibraltar and Monaco are rising or holding steady, and Jersey, Guernsey, the Isle of Man and Geneva are also reversing the trend.

Howard Bilton, chairman of the Sovereign Group, said: 'We believe, and all our local sources are telling us, that much of this disparity is because of interest from a new breed of British tax refugee as the UK government’s tax-and-spend folly begins to bite.

'It is no wonder that the offshore locations are benefiting with healthy property markets, but it is a very sorry situation for the UK and for those taxpayers who aren’t able to go offshore.'

The research also follows Chancellor Alistair Darling's announcement in the Budget that individuals earning in excess of £150,000 per year will be subject to a 50% tax rate from next April.

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