Blow to Chancellor’s Tax Take as «1,800 non-doms» Leave the UK
New analysis of government data by consultancy Chamberlain Walker suggests that 1,800 non-doms have left the country since the changes in April – 50 percent more than the official forecast.
«These figures chime with what we are seeing, and we have long believed that the Office for Budget Responsibility’s forecast – that scrapping the non-dom regime would trigger a 25 percent departure rate – looked conservative», Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions, said.
The UK has already seen a significant flight of wealth, and more wealthy individuals are considering international options with increasing regularity. The first wave comprised the wealthiest, who left before the non-dom changes came into effect in April this year.
Second Wave Likely to Continue
The second wave consists of families accelerating plans to leave to coincide with children finishing full-time education in the UK, so this wave will likely continue for the next few years, people familiar with the matter added.
«While a recent report suggested people are eager to return to the UK at the first opportunity, the reality is that the tax rules discourage this – anyone coming back within six years risks being taxed on income and gains earned while abroad, meaning most will stay outside the UK for a decade or more», Acheson added.
Other Jurisdictions
Meanwhile, other jurisdictions are bending over backwards to attract this wealth, and the UK’s loss is very much Italy’s, Switzerland’s, Portugal’s, and the UAE’s gain, as finews.asia reported earlier.
