All the tax advisers are saying it: Some of their clients are thinking of leaving the United Kingdom, others have already done so. Marilyn McKeever, from BDB Pitmans, mentioned a handful of high net worth individuals who have already packed their bags, mainly Americans who have returned to the United States, while another is packing his bags for Portugal. Vanesha Kistoo, who looks after French clients for Blick Rothenberg, estimates that around 20% of them are seriously preparing to leave British soil. "Some were considering returning to France, but, since the dissolution of the Assemblée Nationale, that's out of the question." Anthony Whatling of Alvarez & Marsal cited a banker whose six clients have left since the beginning of the year.

The UK is about to put an end to a tax exemption that has existed since 1799 and benefits wealthy foreigners resident in the country. "Non-dom" status was originally invented for settlers who had made their fortunes on the other side of the world and wanted to avoid taxes until they had repatriated their money to their homeland. Over the course of two centuries, it has gradually evolved into an exceptional regime, allowing people to live in the UK, and pay tax only on money earned there or repatriated. All income generated outside the UK is exempt.

Under pressure from Labour, the Conservative government announced in March that it would end the program from April 2025. Now in power, Labour has not only confirmed this but intends to go further, ending the exemption from inheritance tax for non-doms that the Conservatives had maintained.

"If you make Britain your home, you should pay your taxes here (...) If you live here, you should contribute to investment in our health service, in our defense, in our law and order..." explained Rachel Reeves, new chancellor of the Exchequer, to Bloomberg on July 18. Labour claims that the measure will raise £2.6 billion (€3.1 billion) a year. Arun Advani, of Warwick University and author of several research articles on the subject, is a little more optimistic, estimating revenues at £3.4 billion (€4 billion).

"I'd be very surprised if it brought in anything," said McKeever, of BDB Pitmans. According to her, the departure of her clients will cancel out the tightening of tax rules.

Currently, 83,000 people are non-doms, paying £12.4 billion (€14.7 billion) in combined taxes (income tax, social security contributions and capital gains tax). But less than half of these – 37,800 people – are really affected by the reform, the others already paying tax on their entire income.

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