Super-rich entrepreneurs consider leaving Britain over tax: Report
Investment firms, wealth managers, and private bankers serving about 70,000 UK-based ‘non doms’ are watching for the historic tax overhaul.
By EasternEyeJul 20, 2024
For entrepreneur Bassim Haidar, living in London has become an expense he can no longer justify.
As Keir Starmer takes office, Haidar is looking for homes in Greece and Monaco. He says a proposed inheritance tax change will make Britain undesirable for the wealthy.
Starmer argues that the overhaul will create a fairer tax system and fund public services.
While Haidar supports some reform, he believes the proposed changes could harm the economy if international business owners leave or avoid Britain. This could hurt Britain's reputation as a hub for startups.
In March, the recently ousted Conservative government proposed phasing out the 'non dom' tax regime, which spares wealthy individuals from paying tax on overseas income.
Before the 4 July election, Starmer's Labour party promised to also remove permanent reliefs for 'non doms' who put non-UK assets into a trust within 15 years of moving to Britain.
With Labour now in power, Haidar urges Starmer and finance minister Rachel Reeves to reconsider these plans. He suggests a new annual tax on individuals with a net worth over 5 million pounds.
Haidar estimates a 150,000 pound levy could raise an additional 4 billion pounds a year without causing an exodus of the wealthy.
"The idea that the UK is too good to leave is wrong," said Haidar, a 53-year-old Nigerian-born Lebanese citizen.
"Being taxed heavily on wealth generated outside Britain, possibly years before moving here, is unfair," he said. Haidar calls for discussions with globally-mobile millionaires about tax reforms that may put UK jobs at risk.
Patriotic Millionaires UK is also campaigning for annual wealth taxes on the super-rich.
A 2 per cent tax on wealth over 10m pounds would impact around 20,000 people and could raise up to 24bn pounds a year, the group estimates.
Financial concerns
Investment firms, wealth managers, and private bankers serving about 70,000 UK-based 'non doms' are watching for the historic tax overhaul.
The Labour government expects to raise an extra 5bn pounds a year by addressing domestic tax avoidance. Estimating additional revenue from changing offshore trust tax perks is more challenging.
"It is not possible to directly measure how much foreign income non-doms using the remittance basis have, and therefore what the potential tax base is," the Institute for Fiscal Studies (IFS) said in a March report.
Inheritance tax raised 2.1 billion pounds between April and June, 83m pounds more than the same period last year, according to UK tax authority data.
Britain has around 37,000 non-doms who are taxed on a 'remittance basis,' meaning UK taxes are not charged on their foreign income or capital gains unless brought into the UK.
The IFS reported that these individuals collectively paid about 6bn pounds in UK income tax, National Insurance contributions, and capital gains tax in 2020-21.
Threats by the wealthy to leave unfriendly tax regimes are not new. Some advisers believe London's status as a diverse city with world-class schools will keep the wealthy from leaving.
But Haidar says the desire to protect his family wealth outweighs the inconvenience of moving.
According to the UBS Global Wealth Report for 2024, Britain is likely to lose nearly one in six of its US dollar millionaires by 2028.
UBS attributes the expected 17 per cent drop to the high number of super-rich in the UK, the Russia-Ukraine war, and the end of 'non dom' tax perks.
In contrast, the number of dollar millionaires in the US and France is expected to rise by 16 per cent, in Germany by 14 per cent, in Spain by 12 per cent, and in Italy by 9 per cent by 2028.
The IFS report in March noted "limited evidence on how non-doms would respond to higher taxes."
Investor concerns
The proposed tightening of tax loopholes comes as UK financial regulators aim to make Britain more attractive to global companies and investors.
Last week, the Financial Conduct Authority announced a revamp of corporate listing rules to encourage private firms to go public on the London Stock Exchange.
However, Haidar has paused plans to list his financial services firm Optasia in Britain and is exploring alternative locations with more favourable tax regimes.
"If those already here are now looking to leave, how can you attract new ones when the new system is more punitive?" he said.
David Lesperance, managing director of Lesperance & Associates, warned the government not to underestimate the ease and speed at which wealthy families can leave the UK. He noted that countries like Dubai and Singapore are eager to attract them.
Several of his clients are considering relocating to up to 17 alternative tax jurisdictions, including Ireland, Malta, and Portugal.
"Wealth doesn't stay still. It doesn't have to. The golden geese have wings and they will fly," he said.
TATA STEEL UK has started construction of a new Electric Arc Furnace (EAF) at its Port Talbot site in South Wales. Tata Group chairman Natarajan Chandrasekaran marked the groundbreaking ceremony on July 14, joined by Tata Steel CEO and managing director TV Narendran and Tata Steel UK CEO Rajesh Nair.
The EAF project is part of Tata Steel UK’s £1.25 billion plan to transition to low-carbon steelmaking, backed by £500 million from the UK government. The furnace is expected to be commissioned by the end of 2027 and aims to reduce carbon emissions at Port Talbot by about 90 per cent, or 5 million tonnes of CO₂ annually. The project is expected to support 5,000 jobs.
“This is an important day for Tata Group, Tata Steel and for the UK,” said Mr Chandrasekaran. “Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.”
Business secretary Jonathan Reynolds said: “This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.”
Wales Secretary Jo Stevens said: “The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town.”
The Port Talbot EAF will produce up to 3 million tonnes of steel per year using UK-sourced scrap. Construction is being led by Sir Robert McAlpine, with support from regional contractors and technology providers including Tenova, ABB, and Clecim.
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Virgin Media has not yet issued an official statement about the current outage
Virgin Media users report widespread service outages on the morning of 14 July
Over 400 complaints logged on DownDetector within hours
Customers say live chat support has been unresponsive or unhelpful
Issues also reported with Sky Sports app logins via Virgin Media
Company yet to issue full statement but advises users to contact customer services
Virgin Media broadband users across the UK experienced widespread disruption on Monday morning (14 July), with several hundred reporting a complete internet “blackout” and issues accessing the Sky Sports app via their Virgin logins.
According to data from DownDetector, over 400 reports were logged in the early hours, with affected customers sharing their frustration online. Many cited connectivity failures, poor customer support, and issues persisting for hours.
Users report internet failure and lack of support
One customer wrote: “Having massive problems with my Wi-Fi. Online live chats not providing any help, even after I was told to contact [support].”
Another said: “Appalling broadband service the last few weeks. System goes down for hours on end and you can’t get through to speak to anyone. Just happened again this morning with an estimate of 6 pm recovery.”
Users took to social media platforms, particularly X (formerly Twitter), to share their experiences and seek help, with many stating they had tried rebooting systems without success.
Sky Sports access disrupted during Test match
In addition to broadband issues, Virgin Media customers also reported problems accessing the Sky Sports app, coinciding with the final day of a major Test cricket match.
One user posted: “Come on Virgin Media, it's the 5th day of the Test match in 5 minutes and the Sky Sports login is broken... Please acknowledge and fix it soon.”
Another added: “Trying to watch Sky Sports cricket on the app using my Virgin Go login and I'm getting an ‘access denied’ error. Tried about five times now. It was working fine yesterday.”
Company response pending
Virgin Media has not yet issued an official statement about the current outage. However, its social media support team has responded to individual complaints, directing users to contact customer services for further assistance.
The last significant disruption occurred in February this year, when customers similarly reported a “total blackout.” At the time, a Virgin Media spokesperson apologised and said the company was working urgently to resolve the issue.
It remains unclear how long the current problems will persist or whether compensation will be offered to affected users.
US CARMAKER Tesla is finally making its official debut in India with the opening of its first showroom in Mumbai.
The firm, led by Elon Musk, will unveil the new “Tesla Experience Centre” on Tuesday (15) at Maker Maxity Mall in the Bandra Kurla Complex, one of the city's top commercial hubs.
This marks Tesla’s first formal step into the Indian market, after years of delays and speculation. According to official records, the company has already imported around $1 million (£780,000) worth of cars, charging equipment, and accessories into the country—mostly from China and the US.
Among the imported vehicles are six units of the popular Model Y, with five standard versions valued at £25,350 each and one long-range model at £35,880. Several Tesla Superchargers were also shipped in as part of the initial setup.
Although India has been eager to welcome Tesla, including introducing policies to encourage local production, the company has chosen to start with imports.
This means Tesla will have to pay high import duties - nearly 70 per cent - making its cars much pricier in India compared to other markets. The government has offered lower duties of 15 per cent for companies willing to invest $500m (£390m) and set up manufacturing locally, but so far, Tesla has not agreed to those terms.
Reports suggest Tesla is not currently interested in building a factory in India. Musk had previously planned a visit to the country in 2024, during which he was expected to announce a multi-billion-dollar investment, but the trip was cancelled at the last minute.
Despite the absence of local production, Tesla appears committed to growing its presence. It has started hiring in India, filling positions for showroom advisors, service engineers, vehicle testers for its Autopilot system, and other roles in cities like Mumbai and Delhi.
The Indian EV market is growing rapidly, with local player Tata Motors and Chinese firm BYD already established in the sector. Tesla’s entry is expected to increase competition and raise interest in premium electric vehicles, even as high costs remain a concern for most buyers.
(with inputs from agencies)
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UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)
UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.
Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.
“We’re excited to bring Kings Court Hotel into our portfolio as our first Warwickshire acquisition,” said Saluja. “It has a solid foundation and loyal customer base. We see potential to develop the hotel while preserving its heritage.”
The West Midlands hotel, on a 4.2-acre site between Alcester and Redditch, began as a 17th-century farmhouse and now operates as a hospitality business with public areas, event and conference facilities and wedding capacity for up to 130 guests.
The hotel’s previous owner said Kings Court had been central to their work for over 30 years.
“It’s been a privilege to grow it into what it is today,” the owner said. “As we retire, we’re pleased to see it pass to a new owner who shares our commitment to hospitality and has a vision for its future.”
“The sale of Kings Court Hotel drew strong interest due to its size, location and trading performance,” said Josh Sullivan and Peter Brunt of Colliers International UK. “We’re pleased to have completed the transaction with Nanak Hotels and look forward to seeing how they develop the asset.”
In February, UK-based Shiva Hotels, led by founder and CEO Rishi Sachdev, secured $372m (£289m) to renovate The BoTree in Marylebone, London. Separately, Indian tech firm Oyo announced a $62m (£48m), three-year plan to expand its UK hotel portfolio by acquiring inventory and securing leasehold and management contracts, supporting 1,000 jobs.
PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.
The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.
She has been appointed for a five-year term and will also join the HUL board, subject to necessary approvals. She will continue to be a member of the Unilever Leadership Executive.
Nair began her career with HUL in 1995 and has held various roles across sales and marketing in the company’s Home Care, Beauty & Wellbeing, and Personal Care businesses.
Between 2014 and 2020, she served as executive director, Home Care and later as executive director, Beauty & Personal Care from 2020 to 2022. She then moved to a global role as the chief marketing officer for Beauty & Wellbeing at Unilever, and in 2023, was named president of the business.
Under her leadership, the Beauty & Wellbeing division has grown into a more than £10 billion global business covering hair care, skin care, prestige beauty, and health and wellbeing, including vitamins, minerals and supplements.
She has overseen brand building, innovation, revenue growth, digital transformation, and profit delivery.
Speaking on her appointment, HUL chairman Nitin Paranjpe said, “Priya has had an outstanding career in HUL and Unilever. I am certain that with her deep understanding of the Indian market and excellent track record, Priya will take HUL to the next level of performance.”
Nair’s appointment comes after Jawa’s two-year term, during which the company focused on volume-led growth. “On behalf of the Board of HUL, I would like to thank Rohit for leading the business through tough market conditions and strengthening its foundations for success,” Paranjpe added.
Over her 28-year career, Nair has built and managed several leading consumer brands. She is recognised for turning around underperforming businesses and leading cross-functional teams.
The Indian executive has also served as an independent director on the board of a publicly listed Indian company, a board member of the Advertising Standards Council of India (ASCI), and a member of several government-backed partnerships and industry bodies.
Nair currently lives in London with her husband and daughter.