London’s Shard on June 9.
Photographer: Jose Sarmento Matos/BloombergBritain Counts the Mounting Cost of Taxing Wealthy ‘Non-Doms’
The UK government says ending special tax privileges for the rich will bring in billions — but a growing exodus is putting those claims to the test.
As the pace of wealthy individuals leaving London quickens, the numbers are starting to stack up: Labour’s flagship “tax the rich” policy risks becoming a net drain on the UK economy.
Barely a day passes by without a big investor or entrepreneur exiting after the government abolished a two-century-old tax break for non-domiciled residents — well-heeled residents hailing from overseas. Billionaire Checkout.com founder Guillaume Pousaz and Nassef Sawiris, Egypt’s richest man, are among those fleeing to European and Middle Eastern financial centers with promises of a lighter tax load, as what began as a trickle of exits quickly turns into an exodus.