A flight of wealthy individuals leaving the United Kingdom is blamed on growing uncertainty regarding the legal status of non-doms. The trend was discussed by experts at a wealth mobility event in London last month, sponsored by Locate Guernsey, which was attended by more than 100 private wealth advisors.
Other reasons for the mass move were blamed on uncertainty of residency status and high property taxes such as Stamp Duty Land Tax as HNWIs look for more tax-friendly destinations.
Speakers on the panel highlighted that wealthy individuals prioritise political stability and institutional security over other considerations. This put traditional jurisdictions such as Barbados low on the list due to the glare of new international standards and tax cooperation. Other important factors regarding relocation included education, healthcare and safety.
The notion of relocation is usually spearheaded by HWNIs themselves but it is family concerns which are most decisive in determining the location of the move, taking into consideration any changes of living standards which might occur.
Mark Davies comments that the UK is not as welcoming as it once was and so many non-doms are looking to leave. “It’s worth bearing in mind that if one of these people leaves, that’s the equivalent of 25 average taxpayers and an increasing number are indeed choosing to relocate to jurisdictions which offer simpler tax regimes and more stability.”
The panel agreed that considerations on tax, family life and high quality of life were central to where HNWIs choose to relocate. Bearing this in mind, it is vital for the UK to have simple administrative processes in place to create a welcoming environment for people choosing to relocate and settle in quickly and comfortably. Many jurisdictions are tax friendly, but few offer the stable political climate and secure standards of living required by HNWIs.
Link to full article: http://www.campdenfb.com/article/tax-non-dom-uncertainty-prompts-uk-wealth-exodus