According to a report by The Telegraph this week, around two thirds of British millionaires have either left the country or taken steps to reduce their taxable incomes. This after then-Prime Minister Gordon Brown raised the top tax rate on those making more than £1 million a year to a whopping 50%.
According to the figures, more than 16 000 people declared an annual income in excess of £1 million in the 2009-10 tax year. But shortly before the last general election, Gordon Brown introduced the 50% top rate of income tax and within a year the UK had only 6000 people declaring earnings of more than £1 million a year.
Conservatives are now claiming that the increase, intended to generate more tax revenue, has actually led to a loss of around £7 billion.
Chancellor George Osborne announced in the Budget earlier this year that from April 2013, the 50% top rate will be reduced to 45%. He has also expressed concern that the high rate was deterring entrepreneurs from coming to the UK.
Since the announcement, the number of people declaring annual incomes in excess of £1 million has again risen to 10 000.