English Escape

Britain's wealthy are leaving:

The latest such incident involves the United Kingdom's tax policy - and how high-earning Brits (by high-earning, we mean productive) are fleeing to greener, lower-tax pastures. Fresh figures this week showed that the British Government is having to borrow more than expected, as tax income typically paid by the wealthiest has disappointed since the start of the year. Lower capital gains taxes, levies on self-assessed income and a weak growth in financial services bonuses have also contributed to the dire picture for (Chancellor of the Exchequer Rachel) Reeves. Now, this first bit here should come as no surprise to anyone with any knowledge of economics who didn't attend Boston University. Lower capital gains taxes generally have the opposite effect as claimed; what you tax, you get less of, and if you tax capital gains at an excessive level (as in, above zero), it has a chilling effect on business development. But here's the real problem the UK faces. The list of wealthy non-doms and British business owners fleeing the UK is also growing longer by the day, with places such as Dubai, Italy and Greece mopping up Britain’s richest émigrés. Last week, Goldman Sachs’ most senior banker outside the US, Richard Gnodde, and British billionaire brothers Ian and Richard Livingstone became the latest to shift their tax domicile outside the UK. They join Egypt’s richest man, Nassef Sawiris, who co-owns Aston Villa Football Club. And steel magnate Lakshmi Mittal, whose family is worth £15bn, is expected to follow. The outflow of the productive from Britain is remarkable; one would almost think it's California.

Blue is as blue does...