Wealthy foreigners dissuaded from investing in UK
Tax contributions paid by wealthy foreigners increased by £107m in the 2023/2024 tax year to reach £12bn, the largest amount since tighter rules around the non-dom regime were introduced in 2017. The numbers for the year to April 2024 are the final set of data before both the Tory and Labour parties confirmed plans to scrap the non-dom regime last year and show a positive trajectory of income from the regime. Wealth advisers say Labour’s reforms are internationally uncompetitive and are driving former non-doms out of the country at an unprecedented rate. The latest HMRC figures also revealed a very low take up of Business Investment Relief, indicating that less than 1% of wealthy foreigners were using the scheme to invest in Britain. Arun Advani, director of the Centre for the Analysis of Taxation, said recent policy changes encouraged new arrivals to invest "anywhere but here." Separately, the CEO of Royal Bank of Canada, Dave McKay, has warned the UK that increasing the tax burden on the wealthy would "100%" result in people leaving for "a lower tax jurisdiction."
Financial Times
