Super-wealthy Leaving UK – Times
According to The Times, millionaires are departing from the UK in unprecedented numbers due to Labour's aggressive tax measures targeting non-domiciled residents. Read Full Article at RT.com
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According to a report from The Times, the UK has seen a significant outflow of millionaires since the Labour Party assumed power last year. The mass departure is linked to the government's announcement by Prime Minister Keir Starmer to eliminate the non-domicile tax regime, which had previously provided substantial tax benefits to affluent individuals residing in the country.
Under the current tax system, non-domicile residents are only required to pay taxes on income earned within the UK, exempting them from taxation on global profits. This system has attracted a considerable number of wealthy individuals, with around 74,000 ‘non-doms’ reported in the UK as of 2023.
The proposed switch to a residence-based tax structure by the Labour government appears to be influencing migration patterns. Data from analytics firm New World Wealth, cited by The Times, reveals that the UK experienced a net loss of 10,800 millionaires in 2024—an increase of 157% compared to the previous year.
Moreover, the actual figure of those departing is likely higher, as the count also factors in wealthy newcomers. This translates to one millionaire leaving the UK approximately every 45 minutes since Labour's electoral victory last July, with many choosing destinations like Italy, Switzerland, and the UAE. In particular, the country's super-rich seem particularly motivated to relocate, with the statistics showing that 78 centimillionaires and 12 billionaires left in the last year.
In October, the Office for Budget Responsibility projected that the tax changes might lead to 12-25% of non-doms exiting the country. If a quarter were to leave, it would pose a significant setback for the UK economy. Last year, the average non-dom contributed £800,000 in VAT, and this group plays a crucial role in investment, often being key clients for upscale businesses.
The agency anticipates that the modifications to the non-domiciled tax system will generate approximately £2.5 billion annually for the UK budget. However, The Times also quoted Oxford Economics, indicating that these reforms could ultimately cost the Treasury nearly £1 billion each year due to a decrease in tax income.
Labour maintains that the increased tax revenue will be utilized to finance essential services like free school breakfasts, healthcare, and dental care. Chancellor of the Exchequer Rachel Reeves noted in July that the Labour government inherited a budget deficit of about £22 billion from the previous Conservative administration.
Jessica Kline for TROIB News
Under the current tax system, non-domicile residents are only required to pay taxes on income earned within the UK, exempting them from taxation on global profits. This system has attracted a considerable number of wealthy individuals, with around 74,000 ‘non-doms’ reported in the UK as of 2023.
The proposed switch to a residence-based tax structure by the Labour government appears to be influencing migration patterns. Data from analytics firm New World Wealth, cited by The Times, reveals that the UK experienced a net loss of 10,800 millionaires in 2024—an increase of 157% compared to the previous year.
Moreover, the actual figure of those departing is likely higher, as the count also factors in wealthy newcomers. This translates to one millionaire leaving the UK approximately every 45 minutes since Labour's electoral victory last July, with many choosing destinations like Italy, Switzerland, and the UAE. In particular, the country's super-rich seem particularly motivated to relocate, with the statistics showing that 78 centimillionaires and 12 billionaires left in the last year.
In October, the Office for Budget Responsibility projected that the tax changes might lead to 12-25% of non-doms exiting the country. If a quarter were to leave, it would pose a significant setback for the UK economy. Last year, the average non-dom contributed £800,000 in VAT, and this group plays a crucial role in investment, often being key clients for upscale businesses.
The agency anticipates that the modifications to the non-domiciled tax system will generate approximately £2.5 billion annually for the UK budget. However, The Times also quoted Oxford Economics, indicating that these reforms could ultimately cost the Treasury nearly £1 billion each year due to a decrease in tax income.
Labour maintains that the increased tax revenue will be utilized to finance essential services like free school breakfasts, healthcare, and dental care. Chancellor of the Exchequer Rachel Reeves noted in July that the Labour government inherited a budget deficit of about £22 billion from the previous Conservative administration.
Jessica Kline for TROIB News
