The Autumn Budget is now just a month away, but a year of uncertainty has reportedly left London’s non-domiciled residents looking for the exit. Labour campaigned on a manifesto promise to change the rules for those who keep their main residence outside of the UK for tax purposes, in order to raise funds for public services. A projected £1 billion raised through this levy would be put towards the NHS and school breakfast clubs.
There are rumours swirling that the Treasury may change its plans once the Office for Budget Responsibility runs the numbers. But the damage is already done, say estate agents “The feeling is that there will be several measures that will target non-doms and that they are not wanted here,” said Dominic Agace, chief executive of Winkworth. “Non dom status removal was one trigger but this has only been exacerbated by the language coming from the Labour Government in advance of the October Budget.
” Agace said that his offices across London have reported that clients are looking to move overseas rather than remain in London. "We are experiencing a lot of uncertainty at the top end of the market with high net worth individuals (HNWIs) looking at their options. Uncertainty about the future trajectory of taxation, alongside stated policies is creating a growing negative UK sentiment,” he said.
The planned removal of VAT exemption for private school fees, and a “a perception of high knife crime rates in London” are also prompting HNWIs look for.
