The British economy is facing a serious problem - a mass exodus of millionaires. According to data from New World Wealth and Henley & Partners, almost 10,800 of the wealthiest individuals left the UK in 2024, an increase of 157% compared with the previous year. The main reason is changes to the tax system affecting non-domiciled taxpayers.
A 200-year-old system in the spotlight
The current tax rules allow people who live in the UK but have tax residence abroad to avoid tax on income and capital gains earned outside the UK for up to 15 years. This system, although attractive to non-domiciled individuals, has long been controversial, and Chancellor of the Exchequer Rachel Reeves announced it would be abolished from April 2025.
However, at the World Economic Forum in Davos, Reeves announced an adjustment to the plans. The new rules are intended to preserve the privileges of non-domiciled individuals, while encouraging them to bring their funds to the UK without having to pay significant taxes.
Tax changes in the UK
The Treasury stresses that the changes are intended to attract investors and boost spending. „We do not expect the changes to affect the forecast £33.8 billion of tax revenue over the next five years” - a Treasury spokesperson assures.
Rachel Reeves also assured that the new rules will not breach existing double taxation treaties, and that the changes will be tailored to the expectations of non-domiciled taxpayers.
Advantages of doing business in the UK as a Ltd company
Despite the challenges associated with the tax system, the UK remains one of the most attractive places to run a business. A Ltd company offers many benefits, such as:
- Limited liability - protection of the shareholders' personal assets.
- Favourable tax system - low Corporation Tax rates and the possibility of using tax reliefs.
- Simple registration - a quick and straightforward incorporation process.
- Business prestige - a Ltd company is seen as a credible partner by customers and suppliers.
- Minimal bureaucracy - simplified administrative procedures.
Get in touch with us!
Want to run a business in the UK? Our team will help you set up a Ltd company and adapt your business to the changing tax rules. Book a free consultation and find out what opportunities the UK offers for your business.
Have a question about this?
The first consultation is free - let us talk about your situation.
