‘Petrified’ non-doms poised to flee UK over Labour’s tax plans

[Martin Everson]

Non-doms are paying record taxes, but Labour will shove them out the door​

MSN

 

[polonieth]

If you think the damage done to the UK in the last 27 years was bad, wait till you see what the globalist charlatan Keir Starmer has got coming for the British. Their plan of intentional destruction is about to go into overdrive.

 

[Martin Everson]

Millionaires look to flee the UK in their droves with record number of Britons predicted to leave the country amid fears of Labour tax hikes​

Millionaires look to flee the UK in droves amid fears of tax hikes

A record number of wealthy Britons are predicted to leave the country this year as Labour plans to hike levies in its autumn Budget on October 30.

www.dailymail.co.uk

---- quote start

He added: 'People will pay over the odds to live in their native country, but even the most loyal Brit will abandon ship if the environment becomes too hostile.'

The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024, according to consultants Henley & Partners. Tax and citizenship advisers to some of the UK's wealthiest families have seen a sharp increase in enquiries about moving abroad, to lower tax regimes, since Labour won the election.

Favourite destinations include Italy, Dubai and Ireland. Peter Ferrigno, director of tax services at citizenship advisory firm Henley and Partners, said his firm has gone from receiving very few queries before the election to several a week since.

'Judging by how busy we are, it is a concern for absolutely everyone,' Mr Ferrigno said. 'It is the difference between having enough money to retire or not having enough money to retire. [Clients feel it is] forcing their hand'.

He added that an increase in Capital Gains Tax would be 'the last straw... people who were prepared to pay 20 per cent are now considering leaving.' It is 'desperately, desperately sad', he said.

There are fears that Labour could bring capital gains tax rates – the levy on the profit made when someone sells an asset – in line with income tax rates, pushing the upper band up to 45 per cent – up from 28 per cent.

And the Government is also considering raising inheritance tax, currently 40 per cent on estates worth in excess of £325,000.

David Lesperance, the founder of tax and immigration advisory Lesperance and Partners, said enquiries about leaving the country doubled when it became clear that Labour would win the election in July.

'Ever since Rachel Reeves started talking about a 'fiscal black hole', my wealthy UK non-dom and domiciled clients have been looking anxiously at the exit door,' he said.

'Sir Keir's warnings about a 'painful budget' just reaffirms their concerns that major IHT and capital gains hits will be coming soon.'

Mr Lesperance added: 'The UK's richest families are getting out while the getting is good.

----- quote end

Lets see what Labours autumn budget on October 20 2024 brings. Maybe its not that bad after all. It would be unwise to increase the capital gains tax rate to 45%. What would be point of investing if you have money and live in the UK then? Imagine paying 45% tax on your capital gains then getting hit by a bus the next day and then paying another 40% in IHT

 

[wellington]

Interesting it's Lesperance giving a view, a friend, and formerly had dealings with commercially.

Usually on the ball.

 

[Alonzo]

This has to be satire. He is aware that Spain is a pure socialist tax hell right???

 

[EliasIT]

I’ve read many times in countless threads here on OCT that Spain is a tax nightmare and more bureaucratic than anywhere else. However, I also see that a lot of people are moving from high-tax countries to Spain.

Why would they do that if it’s really as bad as many say?

 

[ElBotellon]

I’ve read many times in countless threads here on OCT that Spain is a tax nightmare and more bureaucratic than anywhere else. However, I also see that a lot of people are moving from high-tax countries to Spain.

Why would they do that if it’s really as bad as many say?

because there is the new Beckham regime which allows for 5 years tax free income from abroad (like a non dom more or less) and 24% on local personal income flat tax. On the other side, no double tax treaty protection (so no reduced DTA rates from abroad).

IMHO spain is perceveid as livable and western place for many. In my opinion is currently a woke-maniac place to live. Super extra crazy feminist propaganda (machismo,etc... obsessive topics and usually women into this very few neurons).

 

[Martin Everson]

Why would they do that if it’s really as bad as many say?

Large expat communities, familiarity, good holiday memories/food and better of two evils compared to home country. So for some if they gonna pay high taxes might as well have some sunshine to go with it maybe.

However my guess is they are just clueless about Spain...lol.

 

[jafo]

However my guess is they are just clueless about Spain...lol.

This! 100% this!

PS. A retired British couple, a tax barrister with his wife, a tax solicitor, and friends of our family in the UK just moved to Puerto Banús.
I kept my mouth shut! I provided NO opinions on the matter.

 

[Martin Everson]

This! 100% this!

PS. A retired British couple, a tax barrister with his wife, a tax solicitor, and friends of our family in the UK just moved to Puerto Banús.
I kept my mouth shut! I provided NO opinions on the matter.

Lol....as I wrote below in 2023 if any rich man just looked at the tax system they have there they would realize you will go broke living their given enough time.

Spain: Andalucia abolishes wealth tax but introduces Tax on Large Fortunes

https://www.andalucia.com/law/wealthtax.htm P.S They basically just renamed it to Large Fortunes Tax and raised the threshold from when the tax applies to euro 3m doh948"".

www.offshorecorptalk.com

 

[chermo]

because there is the new Beckham regime which allows for 5 years tax free income from abroad (like a non dom more or less) and 24% on local personal income flat tax. On the other side, no double tax treaty protection (so no reduced DTA rates from abroad).

IMHO spain is perceveid as livable and western place for many. In my opinion is currently a woke-maniac place to live. Super extra crazy feminist propaganda (machismo,etc... obsessive topics and usually women into this very few neurons).

Does anybody confirm this option and how it works practical? Spain still tax hell in many cases.

 

[Alonzo]

Does anybody confirm this option and how it works practical? Spain still tax hell in many cases.

Yes. They recently modified the regime.

For 6 years you will pay a flat tax of 24% on Spanish sourced income (upto €600k yearly taxable income) so if you earn more than that you’ll pay normal income tax on the remainder

Your foreign income is not subject to Spanish taxation and wealth tax only applies to assets you own in Spain.

 

[Martin Everson]

‘Nothing to offer’: top earners say they may quit the UK over Labour tax rises​

'Nothing to offer': top earners say they may quit the UK over Labour tax rises

High earners tell i they may flee to Germany - or Italy 'where food and weather is better' - if capital gains tax rises in Budget

inews.co.uk

‘Get out of Britain while you still can’, rich told​

‘Get out of Britain while you still can’, rich told

Non-doms prepare to flee as Labour unveils crackdown

www.telegraph.co.uk

How Labour could impose an ‘exit tax’ on wealthy fleeing the country​

MSN

--- quote start

Rachel Reeves has been urged to impose an “exit tax” on wealthy investors moving their money out of the country.

Resolution Foundation, a Left-leaning think tank, has called for Labour to hit those relocating overseas with a capital gains tax charge.

It comes as wealth managers report a surge in the number of super-rich individuals leaving the country ahead of the Budget next month.

Under current rules, investors pay no capital gains tax on UK shares if they leave Britain for more than five years.

However, in a report exploring the fiscal choices facing the Chancellor in the Budget on October 30, the Resolution Foundation, which has close links to Labour, recommended scrapping this rule.

The think tank said: “An Australian-style exit charge should be introduced that levies capital gains tax when people move out of the country.”

Countries such as Australia, Canada and the US already charge an exit tax when investors take up fiscal residence somewhere else.

The UK could see a net loss of as many as 9,500 millionaires this year, more than double the 4,200 who left the country in 2023, according to the Henley Private Wealth Migration Report 2024.

Insight firm, Oxford Economics, also found in a survey of 73 non-doms that 63pc were planning on leaving the UK within two years or actively considering leaving shortly.

In Australia and Canada, if you stop being a resident for tax purposes, then you will incur a capital gains tax charge on your shares as though you have sold them.

Meanwhile, the US applies an exit tax to deter high income individuals from renouncing their citizenship.

If an exit tax were introduced in the UK, it could mean an investor leaving the country and sitting on a £200,000 gain would be expected to pay about £40,000 on their way out.

---- quote end



So they maybe going after any individual with as little as £200k in unrealized gains to pay an exit tax if they try and leave.

 

[polonieth]

‘Nothing to offer’: top earners say they may quit the UK over Labour tax rises​

'Nothing to offer': top earners say they may quit the UK over Labour tax rises

High earners tell i they may flee to Germany - or Italy 'where food and weather is better' - if capital gains tax rises in Budget

inews.co.uk

‘Get out of Britain while you still can’, rich told​

‘Get out of Britain while you still can’, rich told

Non-doms prepare to flee as Labour unveils crackdown

www.telegraph.co.uk

How Labour could impose an ‘exit tax’ on wealthy fleeing the country​

MSN

--- quote start

Rachel Reeves has been urged to impose an “exit tax” on wealthy investors moving their money out of the country.

Resolution Foundation, a Left-leaning think tank, has called for Labour to hit those relocating overseas with a capital gains tax charge.

It comes as wealth managers report a surge in the number of super-rich individuals leaving the country ahead of the Budget next month.

Under current rules, investors pay no capital gains tax on UK shares if they leave Britain for more than five years.

However, in a report exploring the fiscal choices facing the Chancellor in the Budget on October 30, the Resolution Foundation, which has close links to Labour, recommended scrapping this rule.

The think tank said: “An Australian-style exit charge should be introduced that levies capital gains tax when people move out of the country.”

Countries such as Australia, Canada and the US already charge an exit tax when investors take up fiscal residence somewhere else.

The UK could see a net loss of as many as 9,500 millionaires this year, more than double the 4,200 who left the country in 2023, according to the Henley Private Wealth Migration Report 2024.

Insight firm, Oxford Economics, also found in a survey of 73 non-doms that 63pc were planning on leaving the UK within two years or actively considering leaving shortly.

In Australia and Canada, if you stop being a resident for tax purposes, then you will incur a capital gains tax charge on your shares as though you have sold them.

Meanwhile, the US applies an exit tax to deter high income individuals from renouncing their citizenship.

If an exit tax were introduced in the UK, it could mean an investor leaving the country and sitting on a £200,000 gain would be expected to pay about £40,000 on their way out.

---- quote end



So they maybe going after any individual with as little as £200k in unrealized gains to pay an exit tax if they try and leave.

Exit tax incoming

 

[wellington]

‘Nothing to offer’: top earners say they may quit the UK over Labour tax rises​

'Nothing to offer': top earners say they may quit the UK over Labour tax rises

High earners tell i they may flee to Germany - or Italy 'where food and weather is better' - if capital gains tax rises in Budget

inews.co.uk

‘Get out of Britain while you still can’, rich told​

‘Get out of Britain while you still can’, rich told

Non-doms prepare to flee as Labour unveils crackdown

www.telegraph.co.uk

How Labour could impose an ‘exit tax’ on wealthy fleeing the country​

MSN

--- quote start

Rachel Reeves has been urged to impose an “exit tax” on wealthy investors moving their money out of the country.

Resolution Foundation, a Left-leaning think tank, has called for Labour to hit those relocating overseas with a capital gains tax charge.

It comes as wealth managers report a surge in the number of super-rich individuals leaving the country ahead of the Budget next month.

Under current rules, investors pay no capital gains tax on UK shares if they leave Britain for more than five years.

However, in a report exploring the fiscal choices facing the Chancellor in the Budget on October 30, the Resolution Foundation, which has close links to Labour, recommended scrapping this rule.

The think tank said: “An Australian-style exit charge should be introduced that levies capital gains tax when people move out of the country.”

Countries such as Australia, Canada and the US already charge an exit tax when investors take up fiscal residence somewhere else.

The UK could see a net loss of as many as 9,500 millionaires this year, more than double the 4,200 who left the country in 2023, according to the Henley Private Wealth Migration Report 2024.

Insight firm, Oxford Economics, also found in a survey of 73 non-doms that 63pc were planning on leaving the UK within two years or actively considering leaving shortly.

In Australia and Canada, if you stop being a resident for tax purposes, then you will incur a capital gains tax charge on your shares as though you have sold them.

Meanwhile, the US applies an exit tax to deter high income individuals from renouncing their citizenship.

If an exit tax were introduced in the UK, it could mean an investor leaving the country and sitting on a £200,000 gain would be expected to pay about £40,000 on their way out.

---- quote end



So they maybe going after any individual with as little as £200k in unrealized gains to pay an exit tax if they try and leave.

Writing was on the wall a long time ago now

Sucks to be trapped (for those that are) but they were warned

 

[Martin Everson]

Yes people were given notice. Now the diehards who want to stay are waiting for October budget. But writing is on wall no matter what is decided in that budget. Run for your life and don't look back.

Such a shame.

 

[jafo]

Countries such as Australia, Canada and the US already charge an exit tax when investors take up fiscal residence somewhere else.

Yes people were given notice. Now the diehards who want to stay are waiting for October budget. But writing is on wall no matter what is decided in that budget. Run for your life and don't look back.

Such a shame.

Can someone smarter please explain this sh1t to me like I'm 5?

1. The UK has changed its policies to hyper-tax the wealthy (non-doms)! OK...
2. Since the non-doms refuse to be financially sodomized & abused, they flee the UK in mass numbers. OK.
3. The UK, upon seeing this, will now charge an exit tax, just as "Countries such as Australia, Canada, and the US already charge an exit tax when investors take up fiscal residence somewhere else." Like WTF???!!!
4. Migration is positive in countries ....wait for it..."Australia, Canada, and the US already charge an exit tax" -- that are ALREADY charging an exit tax.
5. Are the people leaving the UK the same or some of the people moving to "Australia, Canada, and the US that already charge an exit tax"???
6. If affirmative, why???
7. Who are their lawyers, tax accountants, and service providers advising these people? The IRS???

I have so many questions...

PS. Are we really this much smarter on OCT than these non-doms, their lawyers, accountants, service providers, and other pundits???

 

[manukahoney]

Are we really this much smarter on OCT than these non-doms, their lawyers, accountants, service providers, and other pundits???

No, but we only see the small picture. UK is still a go-to destination for many wealthy foreigners from HK, China, SEA, ME and even ex-USSR. Yes, there are more taxes now, but for most of them the wealth is already either wrapped in corps or structured in some other way. So yes, many will leave, many will come, not much will change. There is no significant drop in 2+ mil properties in London, there is still a huge waiting list to the best private schools etc.

The same with Spain - second most aggressive tax enforcement in the world yet people are coming in droves, new multimillion villas are built on every Costa every day, no drop in prices.

So yes, people are ok with being sodomised by tax authorities as long as it comes with a lot of lube, jar of sangria and a bit of sunshine.

 

[wellington]

Yes people were given notice. Now the diehards who want to stay are waiting for October budget. But writing is on wall no matter what is decided in that budget. Run for your life and don't look back.

Such a shame.

Singapore pretty solid destination - UAE is like Disney though

No, but we only see the small picture. UK is still a go-to destination for many wealthy foreigners from HK, China, SEA, ME and even ex-USSR. Yes, there are more taxes now, but for most of them the wealth is already either wrapped in corps or structured in some other way. So yes, many will leave, many will come, not much will change. There is no significant drop in 2+ mil properties in London, there is still a huge waiting list to the best private schools etc.

The same with Spain - second most aggressive tax enforcement in the world yet people are coming in droves, new multimillion villas are built on every Costa every day, no drop in prices.

So yes, people are ok with being sodomised by tax authorities as long as it comes with a lot of lube, jar of sangria and a bit of sunshine.

Don’t know about that - Ruskies moved here in droves

Chinese also parking capital here

 

[manukahoney]

Don’t know about that - Ruskies moved here in droves

A few years ago the public boarding school (for non-UK guys - it's a private school with fees around 40k+ EUR annually) my kids were attending was overwhelmed by Hong Kong students and like every single expensive house within 5 mile drive was rented out to people moving from HK. It was after China started integrating HK in their usual way.
Before that there was a constant influx of Russians, then Nigerians. The was also a stable EU community of people working in banking, a few Americans or Canadians and an odd Aussie. We moved schools, but the mix was more or less the same.
I'm not saying all of them are UHNWI, but UK was always a go-to country to protect (not to make!) capital and the whole legal system is built around that. HMRC is a very reasonable tax authority comparing with IRS or Hacienda or whatever you have in third world countries. Just check how many cases (not much) did they open against super-wealthy and how many did they win (a fraction).

Long story short: you relocate to the UK to conserve your wealth, educate your kids and eventually pass your wealth to them. It's a generational thing, it never was a low-tax jurisdiction and non-dom was a nice boon to attract more people rather than a necessity.