Wealthy couple forced to leave UK due to new tax rules

In recent weeks, there has been a significant increase in inquiries about moving overseas from wealthy individuals in the UK, particularly among those holding non-domiciled tax status. The urgency surrounding these inquiries has grown as the abolition of this centuries-old tax regime approaches, leading to fears of a wealth exodus that could have a detrimental impact on the UK economy. Dr Ann Kaplan Mulholland, a successful entrepreneur, expressed her dissatisfaction with the Chancellor Rachel Reeves, citing the impending loss of their non-dom status as a primary reason for their decision to relocate. Under the previous non-domiciled tax system, wealthy foreigners residing in the UK could avoid taxation on their global earnings. This regulatory environment has soon become a thing of the past as the government enforces new changes that will see most non-doms facing UK tax on their worldwide income. For many, including Kaplan Mulholland, this shift represents an untenable financial burden, forcing high-net-worth individuals to explore relocation options to safeguard their wealth and lifestyle. The Canadian-born entrepreneur, 64, alongside her husband Dr Stephen Mulholland, who is a co-founder of InMode, a Nasdaq-listed company, articulated that they feel cornered into moving to Italy due to the new tax regulations, which they view as a personal attack on their financial strategy. Kaplan Mulholland’s aversion to relocating stems from her dislike for Italian cuisine, notably carbs, which she humorously cited as a concern. Such personal anecdotes illustrate the broader sentiment of frustration among the wealthy as they absorb the impact of government decisions on their livelihood. As inquiries about overseas moves have reportedly surged nearly threefold in just the first quarter of this year compared to the same time last year, it is evident that a ripple effect is unfolding across the affluent population in the UK. Analysts suggest that the looming deadline for the new tax laws will prompt more individuals to consider relocation, thus accelerating the pace at which wealth is leaving the country. The broader implications of this tax reform could set a precarious precedent for future government policies regarding tax laws and the treatment of wealthy residents, potentially challenging the UK’s attractiveness as a domicile for affluent individuals.