'Wealthy' UK households could be 'driven out of UK' by new HMRC rules

Wealthy families could be driven out of the UK by new HMRC rules, the new Labour Party government has been warned. New Chancellor Rachel Reeves is targeting non-doms to raise an extra £2.6 billion to help fund school breakfast clubs and support the NHS.

Rachel de Souza at the accountancy firm RSM commented in the wake of the newss: “The most concerning point is Labour’s proposals to end the inheritance tax exemption for trusts settled by non-doms with non-UK assets."

And Miss de Souza continued: “This one change will likely prove key in driving wealthy non-doms to leave the UK. The issue for UK plc is that many of those planning to go are exactly the people with the skills and abilities to grow businesses and the economy.

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"In other words, exactly the sort of people that Rachel Reeves is keen to encourage.” Nicholas Hyett, investment manager at Wealth Club, said: “Non-dom’s will soon be extinct in the UK, with the new government looking to abolish the tax status that many wealthy individuals use to shelter their international earnings from UK tax.

"These numbers are therefore a glimpse into the past, soon to be part of the fossil record. £8.9 billion of tax revenue is not to be sniffed at, and while taxing the rich might raise more revenue it also runs the risk that the global elite decide to move their taxable wealth somewhere with a lighter touch tax regime.

“The government’s task is to deliver an economic climate that’s more welcoming and ideally a good deal more reliable than the British summer has proven this year. If it can achieve that it has the potential to achieve the best of all worlds – a tax regime where the wealthy contribute more, but don’t feel the need to flee abroad to sunnier climes.”