Squeeze the rich! Wealth tax looms north of the border.

A proposed tax is set to squeeze the rich.

If you are a very successful entrepreneur with more than £1 million and based north of the border the Scottish government could soon be after your money with a proposed new wealth tax.

A billion pound hole in the budget.

The First Minister of Scotland Humza Yousaf sees a wealth tax as an answer to a £1 billion hole in his spending plans for next year.

It could lead to high net worth individuals fleeing south to England. 

Lawmakers at Holyrood are mulling a one percent annual tax on wealth. It would be on property, pension pots and expensive possessions, such as jewellery and art, the Daily Telegraph reported.

A million pound threshold.

A Scottish Trades Union Congress report says this one per cent tax could raise as much as £1.4 billion.    

The tax would have a £1 million threshold. It would affect 12 % of households who would pay an average of £8,000 in extra tax every  year.

“Shouldn’t rule wealth taxes off the table.”

The money is needed for a spending programme to encourage growth and alleviate poverty.    

“I refer back to the work the STUC has done on that in particular, I’ve said that we should give consideration when it comes to the really tough financial constraints we are under, that we shouldn’t rule wealth taxes off the table,” says Yousef. 

Exodus south to England ?

There are fears that high earners could flee south to England to avoid Scottish taxes.

Already, Scots earning £50,000 pay almost £1,500-a-year more than their English counterparts.

Yousaf has said that those who earn the most should pay the most. 

Yet there is concern over a growing gap between taxes in England and Scotland.

The final decision is likely to come in the reading of the Scottish Budget on December 14.