THE RUMOURED EXIT TAX

The rumoured exit tax that the Labour government may introduce is a profoundly damaging move for non-domiciled residents and wealth creators in the UK and threatens the UK’s appeal as a global hub for wealth creation and investment. This tax, aimed at levying a charge on unrealised gains when individuals leave the UK, targets those who have built significant wealth and will then find themselves forced to pay up simply for wanting to relocate.

On top of the above, exit taxes can be notoriously difficult to administer and monitor. They will require an assessment of all assets and gains at the point of departure, which can be incredibly problematic for various assets, such as second properties and private equity, as noted in a fantastic piece by CityAm.

The initial non- domiciled regime was designed to attract global talent and push wealth creation in the UK, but by scrapping that regime and introducing an exit tax it clearly sends the message that the UK is no longer a welcome place for wealth creation. This exit tax will do nothing more than hurt the broader UK economy in the long run and simply must be readdressed before any irreversible damage is done.

 

Move your company overseas now before the exit tax comes in. Find out more on our offshore formations page and get in touch.