London’s affluent residents are considering leaving the city in response to the Labour government’s new tax policies targeting the wealthy. This reaction was evident during a recent private event held at the Jumeirah Hotel in Knightsbridge, where rooms cost over £6,000 ($7,600) a night and offer amenities such as marble bathrooms, private dining rooms, and sweeping views. However, the focus of this gathering was not London but Abu Dhabi, as the city seeks to attract disgruntled UK residents.
This event, hosted at the luxurious Dubai-owned hotel, is one example of a growing trend among global financial hubs vying for wealthy UK-based individuals. Keir Starmer’s Labour government has intensified efforts to reform tax advantages for the rich, notably targeting non-domiciled individuals, commonly referred to as "non-doms." These include multi-millionaires with liquid assets exceeding $1 million and professionals such as bankers who reside in London but claim tax residency elsewhere.
Recent months have seen bankers, lawyers, and other professionals from destinations such as Dubai, Greece, and Singapore ramp up outreach efforts to entice frustrated non-doms. Strategies include exclusive roadshows and partnerships with London law firms. Dominic Volek, head of the private client group at immigration consultancy Henley & Partners, noted, “A decade ago we were doing big events in Mumbai, Shanghai and Singapore that were just focused on coming to the UK. Now it’s the complete opposite.”
Cyprus, too, is actively targeting non-doms. A Cypriot government agency is co-organizing an event at the London Stock Exchange next month, aiming to attract some of the estimated 75,000 non-doms in the UK, most of whom are based in London. Italy has joined the race, offering tax breaks on foreign earnings for over a decade. Recently, Italian law firm Chiomenti sponsored a Henley & Partners event in London titled: “Non-Doms: Should I Stay or Should I Go?”
Abu Dhabi is another major player in this competition. The Abu Dhabi Investment Office (ADIO) and the emirate’s financial center ADGM co-hosted the recent London event, showcasing the emirate’s advantages as a rapidly growing international financial hub. While an external spokesman for ADIO declined to comment, an ADGM spokesperson confirmed that the event was “part of a series of global engagements by ADGM in the US, Asia and Europe to highlight Abu Dhabi’s attractiveness as one of the fastest growing international financial centres.”
The crackdown on non-doms began earlier this year when both major UK political parties sought to eliminate what critics view as unfair tax privileges. While proponents of the non-dom system argue it contributes over £8 billion annually to the UK economy and creates jobs, Labour’s reforms have sought to significantly reduce these benefits. In March, the Conservative government proposed requiring non-doms to pay tax on foreign earnings after living in the UK for four years, rather than the current 15. Starmer’s Labour government went further after its landslide election victory in July, with Chancellor Rachel Reeves introducing reforms that also bring overseas assets under UK inheritance tax. These changes are set to take effect in April 2025.
London law firms report a surge in activity as wealthy individuals reassess their options. Piers Master, a London-based partner at Charles Russell Speechlys who specializes in advising the ultra-wealthy, said, “We’re getting more calls. Now they can at least plan with some certainty, although it’s a form of certainty few of them would want.”
German tech investor Christian Angermayer left London this year for Lugano, Switzerland, after nearly a decade of non-dom status. He criticized the UK’s reforms as a “huge mistake.” Some who remain in the UK are already adjusting, with Oxford Economics reporting that non-doms have sold £840 million worth of assets, including real estate and financial investments, ahead of the planned changes.
Others are taking a longer-term view. A tech entrepreneur holding non-dom status said he intends to stay in London until his youngest child finishes school, noting that lifestyle and cultural factors complicate decisions to relocate. While financial benefits often make leaving attractive, challenges such as extreme temperatures in the UAE, limited living space in Monaco, and competition for international school placements often deter immediate moves.
Nick Candy, a British real estate developer behind London’s ultra-luxury One Hyde Park development, commented, “Rich people have options. Covid has made everyone more aware than ever how they can be more mobile with their wealth and don’t always have to live in one place.”
Switzerland, Italy, and the UAE remain popular relocation choices. However, more remote locations are also trying to capitalize on the uncertainty surrounding the UK’s tax landscape. Notable British figures have already made moves: hedge fund billionaire Alan Howard relocated to Geneva, and a member of the Kamani family behind Boohoo Group Plc now resides in the UAE.
Candy, who made his fortune in UK property, is also exploring opportunities abroad. He attended last month’s event in Abu Dhabi at the Jumeirah Carlton Tower, a five-star hotel owned by Dubai’s ruling family. Sustainability and artificial intelligence were key topics at the gathering, underscoring a broader shift among global wealth centers to attract high-net-worth individuals through forward-looking initiatives.
By fLEXI tEAM
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