Britain eases tax rules to lure back fleeing millionaires
CNBC reports that the United Kingdom plans to ease proposed changes in the controversial tax rules for non-tax residents. The American station's service states that close to 11,000 millionaires left the Isles last year.
The current system, which is 200 years old, allows people living in the United Kingdom but having tax residence elsewhere to avoid paying taxes on foreign income and capital gains for up to 15 years.
The system has long been controversial, prompting Finance Minister Rachel Reeves to announce in October last year that it would be abolished starting in April 2025.
During the World Economic Forum in Davos, Reeves announced that the government would soon present an amendment to the financial bill, increasing the generosity of the rule allowing non-tax residents to bring money to the UK without paying significant taxes.
"We have listened to the concerns raised by the non-tax resident community," said Reeves in an interview with "The Wall Street Journal."
Tax changes in the United Kingdom
Reeves also assured that the changes will not affect double taxation treaties between the United Kingdom and other countries. "We do not intend to change those agreements," she added.
In a statement to CNBC, a Treasury spokesperson stated that the changes aim to encourage non-tax residents to bring their funds to the UK, which is intended to boost spending and investment in the country.
"We do not expect these changes to affect the 33.8 billion pounds in tax revenues projected by the OBR (Office for Budget Responsibility - ed.) over five years," it was added.
Critics have warned that changes to the controversial system could trigger a mass exodus of the wealthiest individuals, who are key to the government's pro-investment agenda. According to data from New World Wealth and advisors Henley & Partners, last year approximately 10,800 millionaires left the United Kingdom, marking an increase of 157% compared to 2023.
