WealthInsight’s HNWI database reveals:
– Super-wealthy worth £8 billion could flee Scotland in the event of independence
– 15 per cent of millionaires residing in Scotland have their primary business in England
– Combined wealth of Scotland’s HNWIs came to £52 billion in 2012
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London, 16 September 2014 – The total personal wealth that could flee Scotland in the event of independence has been revealed by Spear’s magazine, in association with wealth consultancy company WealthInsight.
According to WealthInsight data, high net worth individuals with an estimated £8 billion in personal wealth could consider a move. This is because 15 per cent of millionaires who live in Scotland have their primary business in England, making them prime candidates to switch countries in the event of a Yes vote this week. They represent nearly a seventh of total Scottish HNW wealth of £52 billion.
Some of Scotland’s most high profile business people, including HSBC chairman Douglas Flint, Audrey Baxter, CEO of Baxter Food Group, and its first ever billionaire, Sir Tom Hunter, have recently voiced concerns over the economic impact of a Yes vote.
Josh Spero, editor of Spear’s, says: "If there’s one thing the wealthy – or indeed most people – hate, it’s uncertainty, not least over the laws and taxes which govern them. In the long, obscure and painful period between a Yes vote and eventual independence, wealthy Scots – and particularly those with business interests in England – might well hop the border to England, with its long-settled, reasonably advantageous tax system.
"That’s even before we learn what the Scottish rates of tax would be, which would almost certainly be higher to pay for generous health, education and welfare provision."
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By GlobalDataWealthInsight’s Oliver Williams adds: "While Scotland has long been a hotbed of entrepreneurship, these statistics show that a large proportion of its wealthiest entrepreneurs have benefitted from cross-border business. A Yes vote would therefore not only be hostile to many within Scotland’s wealthy community, but could affect the fortunes of its future entrepreneurs.
"A newly independent Scotland would put many wealthy business owners in an awkward position where they no longer live in the same country as their company. Millionaires across Scotland may suddenly have to choose in which country to declare their domicile and where to keep their millions."
According to the data, 15 per cent, or one in seven, of Scotland’s HNWIs have their primary business in England. 22 per cent of Scotland’s millionaires also have at least one major business interest there.
There were 21,900 millionaires in Scotland by the end of 2012, which equates to approximately 3 per cent of the HNWI population of the UK. Edinburgh is the most popular Scottish city for HNWIs, followed by Glasgow and Aberdeen.
Although there is no guarantee these individuals will leave Scotland if it votes to become independent, WealthInsight believes increased economic uncertainty combined with the potential for higher taxation in the region could lead to many of them considering a move south.
