High earners who will be caught by the 50 per cent income tax rate next year are weighing up the benefits of relocating abroad – as they fear that last week’s Budget announcement could usher in an increasingly punitive tax regime.

Financial advisers say the announcement of the new rate has triggered a wave of interest from wealthy clients in moving to another tax jurisdiction. Those earning more than £150,000 will have to pay 50 per cent income tax on earnings above that level from next April. This extra liability means many other countries – and not just traditional tax havens such as Switzerland and Monaco – now look more attractive than the UK.