Bloomberg UK Politics The Revolting Rich: Is A Wealth Exodus Undermining Labour's Tax Plans?
Jun 20, 2025
A key architect of the tax crackdown argues the immediate 40% inheritance tax on non-doms was a mistake, suggesting a gradual approach could have kept the super-rich from leaving the UK. The discussion highlights the tensions between attracting wealth and ensuring tax contributions, reflecting on historical reforms. Experts analyze the broader impact of these tax policies on foreign investment and the real estate market, questioning whether current strategies are undermining economic growth and stability.
AI Snips
Chapters
Transcript
Episode notes
Historical Tax Regime Insight
- The original non-dom tax break was created in 1799 for colonial reasons and became a full exemption over time.
- The 2017 reform showed a 5% annual departure rate increased temporarily to 10%, indicating tax sensitivity.
Inheritance Tax Reform Flaw
- The immediate 40% inheritance tax on overseas assets was never part of original reform proposals.
- A gradual climb in inheritance tax rates over years would reduce the strong incentive for wealthy non-doms to leave.
Challenges in Measuring Non-Dom Exodus
- Data on non-doms is limited since tax records uniquely show their status, complicating analysis.
- Movement of company directors does not conclusively indicate non-dom departures since non-doms rarely invest directly in UK businesses.