Wealthy Brits fear a Corbyn government more than Brexit, with an increasing number considering moving their cash into cryptocurrencies like Bitcoin, an expert claims.
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.
The chances of a Labour government being formed were bolstered this morning with the announcement from Downing Street that Theresa May had resigned as Prime Minister, and would be out of office by June 7.
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.
“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,” he says in a Coin Rivet article for the Daily Express.
“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.
“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,” added Mr Green.
“It can be expected that a Corbyn-led government will help fuel this trend.”