Following millionaires’ exodus … Britain eases tax rules for wealthy foreigners

The UK Treasury has confirmed that the UK will ease some planned changes to the controversial non-resident tax rule following concerns about the exodus of millionaires. The 200-year-old British non-resident system allows people who live in the UK, but are resident elsewhere for tax purposes, to avoid paying duty on income and capital gains abroad for up to 15 years.

The system has long been controversial, prompting UK Chancellor Rachel Reeves to confirm in her October budget that it will be scrapped from April 2025, and that all long-term residents will be subject to inheritance tax on their assets worldwide. Speaking at a side event at the World Economic Forum in Davos, Reeves said the government would soon introduce an amendment to the country’s finance law, making the rule more generous, allowing non-residents to bring money into the UK without paying significant tax.

“We have heard the concerns raised by the non-resident community,” Reeves told the Wall Street Journal when asked about the recent high-profile exodus of wealthy individuals. She also sought to reassure wealthy overseas investors that the changes would not affect the U.K.’s double tax treaties with other countries.