The end of non-dom tax era had significant impact on wealthy audience who eventually decided to shift to another locations then Britain. The effect was so massive that Government is now drawing up plans for a new UK investor visa.
There has been a mass exodus of wealthy residents from the United Kingdom over the past six weeks, Bloomberg reports. The outflow is a direct result of the decisive action by Keir Starmer’s Labour government, which went beyond the Conservatives’ plans in March and completely abolished the two-century-old preferential tax regime for non-doms. Labour’s new policy has even removed inheritance tax relief for assets held in overseas trusts, leaving long-term UK residents particularly vulnerable.
There are around 75,000 non-doms in the UK who pay more than £8bn in taxes each year, according to the latest official figures. The Adam Smith Institute warns that if the exodus continues, the UK economy could lose around £111bn over the next decade and more than 40,000 jobs.
So now Prime Minister’s Government is considering a new UK Investor Visa for those who are ready to put money in strategic sectors of British economy such as clean energy, artificial intelligence and life sciences.
UK Investor Visa – Tier 1 (Investor) visa as an example
Tier 1 (Investor) visa was very well known on the immigration market for years. In 2022, the program was unexpectedly closed amid discussions about the potential migration of Russian money to the financial capitals of Europe. The Tier 1 visa has also been the subject of numerous media and parliamentary scandals over money laundering.
Most likely that new UK Investor visa will exclude real estate investment option and instead there would be options to bring real benefits to the local economy struggling to be more competitive after Brexit.
Golden Visa as a Tool for Attracting Investments
Despite the fact that investor visas (Golden Visas) are an effective tool for attracting HNWIs, many parliamentarians in Europe have turned against them. As a result, some programs have even been closed, such as in Spain.
At the same time, US President Trump announced that he is ready to accept investors from all over the world (even from Russia) and issue them visas (so-called Trump Gold Card) for transferring money directly to the US Treasury in the amount of 5 million US dollars. Of course, this bold initiative is still just a project, but it is designed to solve the same problem.
Many wealthy people, given the absolute unpredictability of the new government, are leaving the United States, obtaining alternative citizenship, and moving money to other jurisdictions.
