As UK Chancellor Rishi Sunak looks set to hike taxes in the near future, I would urge higher earners to take action now to mitigate the possible substantial hit to their finances.

Mr Sunak is seeking to boost taxes in order to finance the UK’s recovery from the coronavirus crisis.

Sunday’s newspapers reported that the Treasury is devising new plans to generate at least £30bn a year to help cover the huge public spending due to the pandemic.

The Chancellor is reportedly looking into a range of potential new measures such as hiking capital gains tax, corporation tax and income tax, reducing pension tax relief, raising fuel duty, introducing a new online sales tax and shaking-up the inheritance tax system.

It certainly looks as though major tax raids and relief cuts are looming, and it will be the higher earners who will be targeted.

Indeed, a source from the Treasury stated that the political reality is that ‘the only place you get the money is from the better-off’.

It is abundantly clear that the Budget will serve up a pretty considerable financial hit for higher earners.

Because of this, these people need to take steps now, before the Budget in November, to soften the blow.

They need to consider all the available and legitimate financial planning options available to them, including their international options, so as to accumulate and safeguard their wealth.

In early August, deVere carried out a survey which revealed that six out of 10 higher earners in Britain, or indeed those residing overseas with financial links to the country, are worried about the adverse impact of the upcoming Budget on their assets.

To my mind, the Chancellor needs to avoid the simple ‘soak the rick’ steps.

Rather than taxing his way out of the downturn, he should push for sustainable economic growth policies over the long-term.

Although this way would be more effective, it is more complex to do both politically and economically, and, as such, is unlikely to happen.

Indeed, higher earners should expect to receive a bloody nose from the November Budget and should take action as soon as possible to ease the pain.

Click here for my YouTube, LinkedIn profile and Twitter accounts.