Core Points - The UK is set to abolish its non-resident tax regime in 2025, which has allowed wealthy foreigners to avoid taxes on overseas income for up to 15 years [3] - The new tax system will require newcomers to pay taxes on global income after four years of residency, with an estimated additional tax revenue of £40 billion expected from the change [3] - Public support for the tax reform is high, with 60% of the population in favor, as the wealthiest 1% currently hold half of the nation's wealth but contribute only a third of the taxes [3] Group 1 - The non-resident tax regime was established in 1799 to attract foreign investment, allowing wealthy individuals to buy property in London while minimizing tax liabilities [1] - The Labour government plans to implement a residence-based tax system, expanding inheritance tax to cover global assets [3] - The policy change is expected to impact approximately 73,700 wealthy individuals currently benefiting from the non-resident tax regime [3] Group 2 - The proposed tax changes have faced criticism from the Conservative Party, which argues that it may deter foreign investment [5] - Data indicates a significant outflow of wealthy individuals from the UK, with 9,500 millionaires leaving in 2024, double the previous year, and an expected 16,500 by 2025 [8] - The real estate market in London is already feeling the effects, with a 20% increase in high-end property listings and a softening of prices [8] Group 3 - The global trend of tightening tax regulations is evident, with countries collaborating to share tax information, diminishing the appeal of tax havens [10] - The UK faces a challenging fiscal environment, with public debt exceeding 100% of GDP, necessitating increased tax revenue from the wealthy [12] - Historical precedents show that excessive taxation can lead to capital flight, as seen in Spain during the 17th century, raising concerns about the potential consequences of the new tax regime [12]