Labour’s non-dom gamble backfired – now it wants them back

Core Viewpoint - The UK government is facing a significant exodus of high-net-worth individuals due to recent tax reforms, prompting discussions on potential measures to attract wealthy investors back to the country [1][3]. Group 1: Tax Reforms and Their Impact - The Chancellor, Rachel Reeves, abolished the non-dom regime, which allowed wealthy individuals to avoid full UK tax on overseas earnings, aiming for a fairer tax system [1]. - Many wealthy individuals are leaving the UK for countries with more favorable tax regimes, such as Milan and Dubai, indicating a potential backlash against the tax reforms [2]. - The government is concerned that the tax changes could lead to a loss of revenue for the Exchequer, with warnings that ordinary taxpayers may bear the financial burden [3]. Group 2: Proposed Measures to Attract Wealthy Individuals - Officials are considering introducing an investor visa and extending tax exemptions on foreign earnings to retain and attract wealthy individuals [4]. - A proposed "global investor visa" would require individuals to pay £200,000 annually and invest £2.5 million in the UK over five years, offering residency and a 15-year tax exemption on foreign earnings [5]. - The Business Secretary, Peter Kyle, is developing measures as part of a "global talent taskforce" to attract entrepreneurs to the UK [6]. Group 3: High-Profile Exits - Several prominent business figures have left the UK for tax reasons since Labour took power, including billionaire Nik Storonsky and Goldman Sachs banker Richard Gnodde, highlighting the urgency of the situation [7].