UK to relax tax rules for wealthy foreigners after millionaire exodus, says Rachel Reeves

Britain will ease some planned changes to its controversial tax rules that are not part of the millionaire outflow, the Treasury has confirmed.

Britain’s 200-year-old regime prevents people who live in the UK but are resident elsewhere for tax purposes to avoid paying income and capital gains abroad for up to 15 years. The regime has long courted controversy, led by Britain’s Chancellor of the Exchequer Rachel Reeves October budget To confirm that this will be abolished from April 2025 and that all long-term residents will be subject to inheritance tax on their worldwide assets, including those held in trust.

Speaking at a fringe event at the World Economic Forum in Davos, Reeves said the government will soon amend the country’s funding bill, increasing .

“We listened to the problems that were caused by the community that does not cause below,” Reeves told Emma Tucker in the Wall Street Journal when asked about the recent retreat of the ultra-upset.

“In the finance bill, we will introduce an amendment that makes the temporary repatriation facility more generous, allowing women to bring money into the UK without paying significant taxes,” she added.

Reeves also sought to reassure wealthy foreign investors on Thursday that the changes would not affect double tax agreements between Britain and other countries.

“There were some problems with countries that have double taxation with Great Britain, including India, that they will attract to pay inheritance tax. This is not true. We are not going to change these double taxation,” she said.

In a statement on CNBC confirming the plans, a Treasury spokesman said the arrangements were designed to encourage non-profits “to attract funds to the UK, to encourage them to spend and invest that money here”.

“While we do not expect these changes to affect the £33.8 billion in tax revenue that the OBR predicts will be raised over five years, they reflect our ongoing engagement with stakeholders to ensure that the reforms, announced in the budget.

The government’s October introduction of the nemusni was part of a wider crackdown on the upper echelons, with new levies placed on private wealth managers, private schools, second homes and private jets.

Critics warned at the time that the moves would spark mass exodus of ultra wealthy people -Many of whom, according to them, will be a key participant in the government’s agenda.

An estimated 10,800 million left the UK last year, according to updated figures from global research firm New World World and investment firm Henley & Partners, a 157% increase from 2023.