A snowballing exodus of high-earners from Britain – the top 5% of whom pay half of all income tax – is a disaster for Rachel Reeves brought on by her own war on wealth, financial advisers have warned. The Telegraph‘s Eir Nolsøe has more.
Rachel Reeves likes to present herself as a friend of the global elite, rubbing shoulders with finance ministers in Washington and posting pictures online meeting Wall Street billionaires.
But behind the façade, a storm is brewing at home over the Government’s change to non-dom tax rules on these financial masters of the universe, who help fuel a disproportionate amount of UK tax receipts.
Fresh figures this week showed that the British Government is having to borrow more than expected, as tax income typically paid by the wealthiest has disappointed since the start of the year.
Lower capital gains taxes, levies on self-assessed income and a weak growth in financial services bonuses have also contributed to the dire picture for Reeves.
The list of wealthy non-doms and British business owners fleeing the UK is also growing longer by the day, with places such as Dubai, Italy and Greece mopping up Britain’s richest émigrés.
Last week, Richard Gnodde, Goldman Sachs’s most senior banker outside the US, and British billionaire brothers Ian and Richard Livingstone became the latest to shift their tax domicile outside the UK.
They join Egypt’s richest man, Nassef Sawiris, who co-owns Aston Villa Football Club. Steel magnate Lakshmi Mittal, whose family is worth £15 billion, is expected to follow.
Advisers to wealthy global elites warn the chickens are coming home to roost after Reeves’s tax changes, and that efforts to scale back attacks on the wealthy have fallen short.
As the Chancellor returns from her Washington trip, is she starting to regret her move to collapse the non-dom regime?
Among the first to know when a billionaire or multimillionaire decides to up and leave are their tax advisers.
Ceri Vokes, a partner at law firm Withers, says around 10% to 15% of her clients have left Britain because of Reeves’s less generous non-dom scheme and changes to inheritance tax for business owners.
Those with the most to lose are the first to leave, she says.
“It’s definitely the case that the clients who left were those at the upper end of the wealth spectrum. We definitely saw more billionaires leave than millionaires and hundred-millionaires,” Vokes says.
Reeves in January tried to temper the blow with a more generous phase-out of the tax benefit but it “had absolutely zero impact on client behaviour”, Vokes adds.
Britain’s non-dom rules, which date back to the days of William Pitt the Younger (1759-1806), allow foreigners living in the UK to avoid paying tax on income from abroad.
In the 21st century, these wealthy non-doms have become an increasingly important source of tax revenue for successive British governments.
According to the latest government figures, there were 37,800 non-doms in the UK in 2022 who chose to only have foreign income or capital gains taxed if brought into the country.
On average, these people paid £170,700 each in income and capital gains taxes as well as National Insurance contributions.
In comparison, the average British worker pays £7,000 in income tax and National Insurance and most would have paid no capital gains tax at all.
Stuart Adam, of the Institute for Fiscal Studies, says it is impossible to say with any certainty yet whether the blow from wealthy people upping and leaving is bigger than Britain’s fiscal watchdog had anticipated.
Indeed, just as much of a concern is how many people would normally come that now won’t – a difficult thing to measure.
There is a lot at stake: the top 1% of the highest-earning workers pay 28.2% of all of the Government’s income tax revenues. If you zoom out a little further, the top 5pc pay just less than half at 48.8%.
“One of the consequences of tax revenue becoming more reliant on a smaller number of people is that it does make the public finances more vulnerable to the behaviour of that small number of people,” Adam says.
“If you did see a large exodus, that would have an outside impact on the public finances. That is a reason to worry,” he adds.
Worth reading in full.
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The Mail reports? Better than reporting That Former Health Secretary’s odious bile, I suppose. I wonder if the 77th really put some of those trolling posts on here…
And to all our fans, we will see people in jail over this shambles ( i.e. the greatest human rights abuses of modern times), or die trying. Freedom!
I might add this from Dr. Robert Malone’s substack:
“Nuremberg trials and sentences for these modern day Mengeles and Goebbels Frankenstein medical tyrants experiment on other people’s bodies using coercion propaganda and force Justice is long overdue History is repeating itself.
We shall not be moved!
“Almost immediately after the first Veritas video dropped, we all got a masters class in the amazing power and capabilities to control narrative and information which Pfizer has assembled. Important to remember that it was already well known that there is a very tight relationship between Pfizer and Thompson-Reuters. In fact, revealing that clear conflict of interest was the thing that got me kicked off of Linked-In the first time. The UK-based Daily Mail, one of the largest daily publications in the world, puts out a story summarizing the Veritas video, and it is almost immediately deleted.” (From Robert Malone’s substack, my emphasis).
One of the other things that the Daily Mail does. I recall that in 2020 (Spring or possibly Summer) the Daily Mail had a piece about how vitamin D can help protect against viral infection. I presume there has been no repeat since the “vaccines” came out. And then there’s the Times muppets. Be clear, the media manipulation is very real.
I should add that pride is for Christians one of the seven deadly sins. (Lust is another). Just saying…
Its the bizarre way that all these symbols of ‘Inclusion’ don’t include the largest group of our citizens, white heterosexuals…
Yes. I recall a Fulham Football Club supporter in the “United States” got into trouble for his bumper sticker, “come on you whites” in support of that club. Seemingly common sense has nothing to do with it.
Net Zero is full of hand-waving and sweeping statements, none of it attached to reality. As with the push for electric vehicles, which is probably 20 years too early, everything is badly thought out and unachievable. For Nett Zero now to clash with woke is delicious, as when any ideology runs into the brick wall of reality.
Reminds me of Hillary Clinton’s “basket of deplorables” comment, and look what happened to her. The decent Scottish nationalists must be really embarrassed by the First Fish.
Edit: just watched the video and that references Clinton too.
She is corrupt, and she is mad, and she shouldn’t be anywhere near the levers of power. Who’d going to unseat her..?
Net Zero is such an obviously stupid idea it’s hardly surprising that most politicians agree with it.
Stand in the Park Make friends & keep sane
Sundays 10.30am to 11.30am
Elms Field
near Everyman Cinema & play area
Wokingham RG40 2FE
Rogan and Peterson – Davos, energy policy and the elimination of the poor: https://youtu.be/kqkUUZc_N3M
“Lab leak WAS the ‘most likely’ cause of Covid-19″So, it wasn’t an undercooked bat sandwich then?
This is a very off topic/random comment.
I guess a lot of regular readers of this site know that Facebook are a load of complete b******s. A few days ago I joined a Facebook group and a few hours ago I was handed a temporary ban for “going too fast” whatever the hell that means. I’m absolutely furious and want to contact them to have a damn good rant and tell them they are a bunch of cunning stunts. Their website has no contact contact details, so I was wondering if anyone had found out how to contact them. Hopefully the language in this post isn’t too offensive. It isn’t nearly as offensive as the language I would use if I could contact Facebook.
I’ve had a few beers which have probably made me even more furious than I would’ve been. Typing this comment has helped to calm me down a bit so I hope the moderators will take this into account and not remove this comment
I’ve never been on Facebook Matt, it’s a step too far for me! LOL….
I’ve always thought these would be people I don’t even want to talk in in ‘real life’…so….!
But the same thing happened to a friend..the ban only lasted a few hours in her case…
the official explanation is that “any activities done repeatedly in quick succession get flagged. Facebook AI thinks you are a spammer or a robot. Because a robot is trying to determine if you are human or not”……
Have another beer mate….!! LOL!
Every time I see that ‘most likely cause’ headline I can’t get the phrase no sh*t Sherlock out of my head!
Never forget that it was the Cameron – Clegg government that expanded and formalised propaganda for the government in office when they established the “Nudge Unit” in the Cabinet Office. Such a body, financed by tax payers, and used by transient politicians to promote their views and undermine opponents has no place in a democracy at peace.
I had not heard of the 77 Brigade but of course something like it is needed for monitoring opponents or enemies of the state. Goodness, there are enough of them and millions live among us.
Was it used against Brexiteers? Against UKIP for decadesd and is it now used against Net Zero opponents and sceptics. You bet it is. The politicians are so arrogant they could not resist using it tio suppress scepticism or hostility to their latest fashion statement.
Cunch of Bunts !!!…
We have known for a couple of decades, but it was not known outside the inner circle atthe time, but Labour, Conservative and Liberal politicians, senior civil servants and cooperative senior media personel gathered together to promote EEC membership. They were tasked with favourable stories on the EEC and politicins who were believers and negative, insulting stories about anyone who opposed membership.
No penalties have been suffered and I expect lots of favours were shared around (well paid non-jobs, security, gongs, free fun – all the usual political class benefits).
Breaking News!!
Nadhim Zahawi sacked as Tory chairman over tax affairs row….Prime Minister Rishi Sunak said it was “clear that there has been a serious breach of the ministerial code”, but Mr Zahawi made no apology for his actions and attacked the conduct of the media.
Well, Well, Well….am I the only person who thinks he should also be investigated in relation to his time as Vaccine Minister?? Where there’s smoke??
He’s a SH1T house of the highest order !!!..
Import the Third World and you get Third World politics. I’m not saying Zahawi is on his own but he got caught. Of course the corrupt turd will turn up somewhere else, probably H of L after the requisite time in the sin bin.
It would also now be appropriate to stop chucking taxpayers cash at him via his doubtless lucrative yougov contracts.
Wancocks back so sweaty will return I’m sure
Esther Rancid has lung cancer !! Good job she had all the jabs that she was in favour of us all having !!..
“Good job she had all the jabs that she was in favour of us having”
She hasn’t got long left then.
Probably not , the tumour has been found to be in the shape of a Potato !
Take that you Australian morons!!….it took a year… but it makes it so extra extra sweet…..
…..Fabulous!!
A year after Australia deported him over his refusal to be vaccinated against Covid-19, Novak Djokovic reclaimed the Grand Slam title he has won more than any other, capturing a record 10th championship at the Australian Open by beating Stefanos Tsitsipas 6-3, 7-6 (4), 7-6 (5) on Sunday.
GET IN !!..
What a legend 
Seconded.
Cheers ebg. Great news.
I was looking at the latest UKHSA vaccine surveillance report week 2
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1132668/Vaccine-surveillance-report-week-2-2023.pdf
On page 50 is a breakdown of hospitalisations by vaccination status. I thought I would add in on the right a column of percentage unvaccinated (see attached). I don’t have the unvaxed under 40 figure to do a comparison in that age group as UKHSA data only covers over 5s.
As you can see the percentage of ‘covid-19’ hospitalisations that are unvaccinated is almost identical to the percentage of that age group who are unvaccinated in every age group.
So for example 3.5% of the ‘covid’ hospitalisations in the over 75s are unvaccinated and 3.6% of the over 75s are unvaccinated according to the UKHSA’s own data. The 3.5% goes up to 3.7% if you exclude the unlinked but it’s still essentially the same as the unvaxed proportion.
So even in relation to the thing that the experimental vaccinations are supposed to protect against, hospitalisation from ‘covid’, there is no benefit at all with experimental vaccination. Of course experimental vaccination comes with all the significant harms.
Of course this isn’t mentioned in the UKHSA report at all. They simply claim ‘vaccination is highly protective against hospitalisation as VE studies show’
Can anyone confirm my figures are correct?