According to one of the world’s leading independent financial experts, many of the UK’s millionaires fear their prosperity would be damaged under a Jeremy Corbyn-led government more than Brexit. Polls suggest that the Conservative party is haemorrhaging support due to the ongoing Brexit chaos and deadlock, driving up the possibility of another general election in the UK before 2022 and that Labour, with Jeremy Corbyn at the helm, could sweep into power. This prospect is forcing high earners to consider huge investments in the likes of bitcoin and Ethereum, believes Nigel Green – founder and CEO of deVere Group which currently boasts more than $12bn under its advisement. He said: “High-net-worth individuals in Britain and wealthy international investors with UK assets and business know that they will be hit by Mr Corbyn’s tax hikes on wealth, income and inheritance.
“As such, many of them aren’t waiting to find out how his anti-wealth rhetoric would play out, and more and more of them are seeking advice on established, legitimate overseas opportunities to create, build, and importantly, protect their wealth.
“An increasing conversation we’re having with clients in this regard involves investing in cryptocurrencies, such as Bitcoin, Ethereum and XRP, in lower tax, crypto-friendly jurisdictions.”
Some of the appeal for wealthy investors towards cryptocurrency comes from tax breaks in a currently unregulated industry.
There are some countries, including Germany, that explicitly and officially offer tax exemption of capital gains on cryptocurrencies.
Others, including Hong Kong and Switzerland, unofficially offer the same as they don’t have capital gains tax there.
Mr Green added: “In a broader sense, high-net-worth individuals are increasingly seeking exposure to the associated benefits of these digital assets as our recent global survey highlights.
“It can be expected that a Corbyn-led government will help fuel this trend.”