Investors concerned about UK income tax hikes

​​​​​​​By Gokhan Yildiz and Emir Yildirim

ISTANBUL (AA) - Investors are concerned over the UK income tax hikes, as the National Contribution Rate (NIC) for employers will rise from 13.8% to 15% after April.

Buket Erdogan, corporate and immigration solicitor at the London-based Ashton Ross Law firm, told Anadolu that the announced tax increase of £40,000 ($49,785) is the largest in the last 30 years.

Erdogan stated that the UK has been an attractive center for global business and investors for years, but the income tax increases in recent years worried investors, including Turkish businesspeople. She noted investors felt prompted to leave the UK after the tax increases.

“Turkish entrepreneurs in the UK have achieved significant successes, especially in technology and innovation,” she said, highlighting that the UK still offers investment-worthy opportunities in those fields.

“Firat Ileri, one of the investors of Peak Games, made significant investments in British tech platforms, while other Turkish entrepreneurs like Murat Derya Ozen and Selin Yigitbasi Ducker left their own mark on the British tech world -- Turkish businesspeople deem the UK as a stronghold of financial investments and a hub for innovation and technology,” she added.

Erdogan noted that the effect of increased tax on investors heavily burdened rich people and large investors.

“It has been reported that the number of millionaires leaving the UK increased by a significant amount, which suggests that high taxes pose a threat to investors and some Turkish businesspeople are also on the verge of leaving the country,” she said. “While tax hikes alone have discouraged investors, technology and innovation offerings of the UK still keep it an attractive destination.”

Erdogan noted that Prime Minister Keir Starmer said artificial intelligence (AI) and technology investments are key for the future of the country in a recent statement.

“Starmer said AI not only transforms existing sectors but also it can create new industries -- these statements show that the UK offers strong support for tech entrepreneurs and the development of tech-related jobs,” she said.

Erdogan stated that the Innovator Founder, Global Talent and UK Expansion Worker (Global Business Mobility) visas attract tech-related businesses and innovative projects, offering ideal opportunities for entrepreneurs in their goals.

She highlighted that Turkish investors can operate in the UK with the Innovator Founder visa and contribute to the British economy, while the Global Talent visa attracts highly skilled professionals in tech, especially in AI.

“The UK continues facilitating the growth of investors by providing an environment that supports high-quality entrepreneurs and innovative projects -- the UK is still making important moves to become a key actor in the global business world by offering opportunities, and while recent statistics point to a big number of millionaires leaving the country, the figures are still limited,” she said.

“Darren Jones, global head of technical development at global financial advisory firm deVere Group, said the UK’s tax hikes may increase the propensity of high net worth individuals to leave the country, particularly the changes to the Inheritance Tax (IHT) and the Foreign Income and Gains (FIG) regime -- regardless, The Sunday Times’ Tax List showed that Chris Hohn, managing partner of the London-based charity Children’s Investment Fund Foundation, is at the top with £340 million ($423 million) for 2025,” she added.

Erdogan noted that the list shows the highest taxpayers in the UK and the top position, Chris Hohn, reveals how much rich people pay in tax.

She highlighted that while some rich people leave the country due to new regulations, not all investors and entrepreneurs do, especially Turkish ones operating in technology and innovation, as they “still strongly prefer to stay in the UK to benefit from the country’s opportunities.”

“They can attain success with the right visa and strategies to push through challenges that tax regulations bring about, and by focusing on emerging technology trends and opportunities in AI,” she added.