Banks, business owners and tax advisers warn higher CGT or new wealth levy would push investment and owners abroad

UK Finance and senior figures in global banks have flagged the risk of reducing the UK's attractiveness for banks to invest, deploy capital and locate jobs. Industry analysis by PwC for UK Finance compares overall tax burdens and shows London faces higher effective tax rates for corporate and investment banks than several competing centres.

• PwC's analysis cited in the industry brief puts a typical corporate and investment bank tax rate at 46.5% in London. That compares with 42.2% in Amsterdam, under 40% in Frankfurt and below 30% in Dublin and New York.

A poll of 500 business owners by S&W found half would consider quitting Britain if CGT rises and 51% would consider leaving if a wealth tax were introduced. Tax partners who spoke to the media say those responses reflect both tax levels and the long-term tax outlook.

What advisers and lobby groups are warning

• UK Finance's chief executive David Postings said banks are already "very highly taxed" and that further industry taxes risk reaching a tipping point that would be very risky for the government. The group has urged ministers to avoid increasing bank taxes and to present a plan to strengthen international competitiveness.

• Toby Tallon, a tax partner at S&W, said further tax rises risk undermining confidence, discouraging investment and prompting entrepreneurs to look overseas. He framed CGT and wealth taxes as particular fault lines to watch in the Budget.

• Elisa Sofocli of Blick Rothenberg emphasised uncertainty as a crucial factor. She said taxpayers who can choose where to live and work will weigh the long-term tax position alongside certainty, access to talent and other quality-of-life factors when deciding whether to remain in the UK.

What this means for policy and businesses

Taken together, the warnings suggest that ministers face a trade-off: raise revenue through higher CGT, a wealth levy or bank-specific levies and risk accelerating relocation and reduced investment, or seek alternatives that avoid widening the tax gap with peer financial centres. The industry is asking for clarity and stability in the tax regime as much as lower rates.

If you run a business, work in financial services, or hold significant capital assets, the debate indicates two practical points: expect tax policy changes to be a central part of the October Budget, and understand that uncertainty about future rules is itself driving relocation considerations for owners and senior executives.

Watch official Budget announcements on October 28 for details on any CGT changes, proposals for a wealth tax, or bank-specific levies. The voices cited call for a focus on international competitiveness and predictable tax rules to retain investment and entrepreneurs.