The Telegraph quotes Nicola Saccardo and Sophie Dworetzsky on the ‘uptick in relocations’ amongst HNW individuals following the abolition of the non-dom regime

It has been widely reported that financial advisers have seen a surge in high net-worth clients preparing to leave the UK following the general election result. 

According to advisory firm Henley & Partners, a record 9,500 millionaires are forecast to leave Britain in 2024, up from 4,200 in the previous year.

The “uptick in relocations” comes after the Government confirmed plans to abolish the non-dom regime which offered generous tax breaks for expatriates. Rachel Reeves has also confirmed she will “have to” raise taxes in order to fix the public finances, with capital gains tax considered a likely target.

Nicola Saccardo, Partner and Italian tax expert has observed an “uptick in relocations to Italy among wealthy individuals” since Labour announced plans to abolish the non-dom regime.

Commenting for the Telegraph, Nicola says:

There has been significant interest in the Italian lump sum tax regime among private equity partners, particularly due to Italy’s favourable treatment of carried interest in contrast to the UK.

Others have warned that the non-dom reforms could lead to a drop in revenue by deterring wealthy individuals from moving to the UK.

Sophie Dworetzsky, Partner, adds: 

The concern amongst most tax advisers who are active in this area is that the proposals – if implemented in their current form – will have a negative rather than positive effect on tax revenues.

Read the full piece in the Telegraph here.