UK Faces Exodus of Wealthy Investors as New Labour Government Seeks to End a 200-Year-Old Tax Rule That Allows Foreign Individuals Living in the UK to Avoid Paying Taxes

Wealthy investors are considering leaving the U.K. as Labour plans to abolish the non-dom tax regime. This 200-year-old tax rule allows foreign-domiciled individuals living in the U.K. to avoid taxes on overseas income. A study from Oxford Economics found that nearly two-thirds of non-doms intend to leave the U.K. Countries like Switzerland, Monaco, and Dubai are actively courting these investors with tax incentives. The U.K.'s luxury real estate market has already felt the impact, with sales in London’s super-prime residential sector down 22% year-on-year.