'They feel they're not wanted here': Are London's super rich fleeing ahead of potential non-dom changes?
The Autumn Budget is now just a month away, but a year of uncertainty has reportedly left London’s non-domiciled residents looking for the exit.
Labour campaigned on a manifesto promise to change the rules for those who keep their main residence outside of the UK for tax purposes, in order to raise funds for public services. A projected £1 billion raised through this levy would be put towards the NHS and school breakfast clubs.
There are rumours swirling that the Treasury may change its plans once the Office for Budget Responsibility runs the numbers. But the damage is already done, say estate agents
“The feeling is that there will be several measures that will target non-doms and that they are not wanted here,” said Dominic Agace, chief executive of Winkworth.
“Non dom status removal was one trigger but this has only been exacerbated by the language coming from the Labour Government in advance of the October Budget.”
“The feeling is that there will be several measures that will target non-doms and that they are not wanted here.”
Dominic Agace, chief executive of Winkworth
Agace said that his offices across London have reported that clients are looking to move overseas rather than remain in London.
"We are experiencing a lot of uncertainty at the top end of the market with high net worth individuals (HNWIs) looking at their options. Uncertainty about the future trajectory of taxation, alongside stated policies is creating a growing negative UK sentiment,” he said.
The planned removal of VAT exemption for private school fees, and a “a perception of high knife crime rates in London” are also prompting HNWIs look for the exit, said Agace.
Home security has also become a major issue for the ultra wealthy, as international gangs increasingly target London’s most expensive neighbourhoods.
“This new system is hollowing out central London.”
Josh Grinling, Winkworth
London is now losing out to other major cities in Europe as the wealthy relocate in search of more favourable financial arrangements said Josh Grinling, who works at Winkworth’s Kensington Office.
“This new system is hollowing out central London," he said.
“Some non-doms are moving to Monaco and Lisbon. Others are just going home back to Paris, Rome, and Madrid. Almost every other country now has a more welcoming tax package than is being offered in UK.”
Another prime central London agent said their clients are moving to Switzerland.
Market valuation appraisals for prime London properties were 25 per cent above the five-year average in August, Knight Frank reported earlier this month, suggesting more homeowners are planning to sell.
London’s prime property market is already at a low ebb, with house prices flatlining after years of political and economic uncertainty. Beauchamp estates has been reporting a significant drop in prime central London sales as HNWIs choose to invest in more up-and-coming property markets such as Dubai.
