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UK's high earners eye exits as taxes bite into record bonuses

Record bonuses aren't enough to keep wealthy Brits from leaving. With taxes devouring gains, 41% are packing their bags—while others hunt for loopholes.

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The image shows a poster with two people standing in front of a backdrop of mountains and trees. The text on the poster reads "What our free trade means - British Granite Worker - The Fair Wages Clause is all right, but I want work".

UK's high earners eye exits as taxes bite into record bonuses

A new survey by the Financial Times reveals growing frustration among high earners in the UK over taxation and pay. While many anticipate larger bonuses this year, nearly half are now considering leaving the country due to high personal tax rates. The findings also highlight a shift in how workers plan to use their extra income.

The FT's annual bonus survey shows mixed fortunes for UK professionals. A record 55% of respondents expect their spring bonus to exceed last year's amount. Yet nearly a third (31%) foresee a payout in the six or seven-figure range.

Pay growth, however, has not kept pace with inflation. Four in ten workers received a below-inflation rise in their basic salary, while 4% saw their base pay reduced. Many also face the £100,000 tax trap, where frozen thresholds shrink their take-home bonus.

Tax concerns are driving potential departures. Four in ten respondents (41%) are actively considering leaving the UK because of high personal tax rates, with another 12% open to the idea. Still, 47% have no plans to move. The survey did not specify preferred destinations, though past reports link wealthy Britons to lower-tax countries like Italy.

Bonus spending habits have also shifted. Only 11% plan to spend their bonus this year—the lowest figure in the survey's history. Instead, 54% intend to invest it in the most tax-efficient way possible, such as through PayPal or TurboTax software for managing taxes.

The findings come as UK bank bosses see their highest pay levels in a decade. Annual bonuses are no longer capped at 200% of salary, further widening the gap between top earners and others.

The survey underscores a divide between rising bonuses and stagnant pay for many professionals. With high taxes pushing nearly half to consider relocation, the UK risks losing a significant portion of its high-earning workforce. Meanwhile, most bonuses will flow into tax-efficient investments rather than immediate spending.

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