Ultra-wealthy entrepreneur Bassim Haidar is considering relocating from London to Greece or Monaco, citing proposed changes to inheritance taxes as the primary factor. The incoming Prime Minister Keir Starmer’s plan to overhaul Britain’s tax system, including scrapping the ‘non-dom’ tax regime, is leading some wealthy individuals to rethink their residence.
The planned reforms would eliminate long-standing tax benefits for non-doms, who are currently exempt from UK taxes on foreign income unless it is brought into the country. Haidar, who described the changes as making Britain a “no go” zone for the rich, argued that “the notion that the UK is simply too good to leave is incorrect.” He expressed concern that the proposed tax regime could drive away international business owners and harm Britain’s reputation as a hub for start-ups.
“The notion that the UK is simply too good to leave is incorrect,” Haidar said. “To be taxed so heavily on wealth generated outside Britain, perhaps years before people even moved to the UK, is unfair.”
Haidar, who runs the financial services firm Optasia, suggested that instead of the proposed overhaul, the government could introduce a new tax model involving a £150,000 annual levy on individuals with a net worth exceeding £5 million. He believes this approach could raise £4 billion annually without deterring wealthy residents. “If those already here are now looking to leave, how can you even begin to attract new ones when the new system is set to be even more punitive?” he said.
The UK government’s plan aims to raise additional funds and address domestic tax avoidance. Investment firms and wealth managers, who serve around 70,000 UK-based individuals with ‘non-dom’ status, are monitoring the situation closely. The Labour government estimates that the reform could raise an additional £5 billion annually by tackling tax avoidance. However, the potential impact on the wealth and investment landscape remains a concern for many high-net-worth individuals and financial advisers.
David Lesperance, managing director of tax adviser Lesperance & Associates, warned, “Wealth does not stay still anymore. It doesn’t have to. The golden geese have wings and they will fly.” He added that several clients are considering relocation to countries like Dubai and Singapore, which offer more favorable tax regimes.
