Nigel Green, CEO of deVere Group, has warned: “Labour, which is looking likely to win a landslide victory, has signalled that they will roll out further restrictions on the non-dom regime.
“This is fuelling enquiries from high-net-worth individuals who are actively considering leaving the UK for a more tax-friendly jurisdiction and who are, therefore, seeking cross-border financial advice.
“There are many locations all over the world which are crafted to appeal to affluent individuals, typically using straightforward planning strategies. These wealthy people are internationally mobile, many already own a second home abroad, so what’s to keep them in Britain?
“The most popular alternative, lower-tax destinations include Spain, Italy, Switzerland, Malta, Dubai and Singapore.”
Labour has also put forward plans to reduce transitional relief by removing the rule that would see non-doms pay just 50 percent tax on income from abroad in the first year.
Another proposal could seen non-UK assets no longer protected from inheritance tax.
Mr Green added: “The expected departure of high-net-worth individuals could result in a reduction of tax revenues, impacting public services and infrastructure development.
“Furthermore, the UK has long benefited from the economic contributions of non-doms, whose direct and indirect investments and business activities have been integral to the nation’s prosperity.
“Additionally, the potential decline in the UK’s reputation as a tax-friendly hub may dissuade future investors and entrepreneurs from considering the country as their base of operations.
“The allure of the non-dom tax status has been a pivotal factor in attracting international talent and creating a dynamic business environment.
“Its removal could signal a shift in the global perception of the UK as a favourable destination for wealth creation and business development.
”The very real possibility of Labour winning the UK election is driving high-net-worth individuals to prepare to leave Britain.”
