The U.K. May Relax Tax Policies That Have Led Wealthy People to Leave the Country
23rd January 2025
Last year, the British government decided to end tax breaks for wealthy foreigners, a decision that may have contributed to 10,800 millionaires fleeing the U.K. in 2024, Bloomberg noted. Now, though, Reeves is considering an amendment that would lessen the impact of those plans, multiple people familiar with the matter told the outlet, requesting anonymity as the details have not yet been publicized. That amendment would allow some people to more easily access the temporary repatriation facility (TPF), which lets non-doms bring in previously earned foreign income and gains at a reduced tax rate.
“The temporary repatriation facility is designed to encourage non-doms to bring their funds to the U.K., encouraging them to spend and invest this money here,” the Treasury said in a statement cited by Bloomberg. The current program is available for three tax years from 2025, with a tax rate of 12 percent for the first two years and 15 percent for the third year. The planned amendment wouldn’t change the tax rates or the length of the TRF, people familiar with the situation told the publication.
While the proposed changes to the tax regime may be celebrated by some high-net-worth individuals in the U.K., they may not largely affect the outflow of millionaires.
Once the government gets the idea that your money is its money, it’s hard to go back.