The Budget is done and dusted and we're all going to be a lot poorer as taxes go up to repay an estimated £175bn of government borrowing next year. For anyone earning £150,000 or more, the top rate of income tax is being increased to 50%, and there will be a strong temptation to relocate to where taxes are lower.
So what are the options for the would-be tax exile? The main places offering lower taxes on Britain's doorstep are the Channel Islands and the Isle of Man. In Jersey, for example, there is a 20% flat rate income tax. But it's not easy for outsiders to become a resident; to obtain the coveted 1(1)K residency for high earners, your income must be at least £500,000 a year - enough to generate tax of £100,000 plus. Those who pass the test and wish to buy on the island must choose from a special category of 1 (1) K properties which are typically in the £1m to £7m range.
Guernsey also has a flat rate 20% tax rate, with no capital gains tax, inheritance tax or VAT; unlike Jersey, anybody can buy a property here, but only from the small number of expensive 'open market' properties which are not restricted to locals. And you have to establish your tax residency - which normally means spending more than half the year outside the UK - before you can benefit from the lower tax rate.
In the Isle of Man, income tax is lower still, starting at 10% and rising to a top rate of 18%, with a cap of £100,000. Anyone can buy property here, without restrictions, and prices are relatively affordable compared to the Channel Islands.
Then there's English speaking Gibraltar, where anyone with net assets of £2m plus can apply for Category 2 residency - which means you are taxed only on your first £60,000 of income, giving you a maximum tax bill of around £22,000. The weather is a distinct improvement on the Isle of Man and there is plenty of property for sale - though the vast majority is in high-rise blocks due to the shortage of land on the Rock. And of course, there's Monaco, where property prices are as high as most of the buildings.
All of these territories have recently come under attack from an international initiative to crack down on tax havens and are having to make concessions to share information and prove that they are not enabling wealthy residents to evade paying taxes elsewhere. The government has repeatedly been reported to be planning to make it tougher to become a tax exile, so now may be the time to make a move.
Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.