German billionaire David von Rosen warns that the abolition of the non-domiciled tax status is driving affluent individuals away from the UK, as London sees a significant decline in its millionaire population.
A prominent German billionaire and businessman, David von Rosen, has voiced his concerns regarding the ongoing trend of affluent individuals leaving the UK, attributing the exodus to the Labour Party’s detrimental decision to abolish the non-domiciled tax status. Speaking to MailOnline from his residence in Dubai, Von Rosen pointed out that the ultra-rich are becoming increasingly wary of the UK as a viable business environment due to soaring tax rates that sap the incentive for investment.
Recent findings from Henley & Partners reveal a staggering departure of around 11,300 dollar millionaires from London in the past year, with notable exits including 18 centimillionaires and two billionaires. Von Rosen, founder of Lottoland and a successful entrepreneur with an estimated net worth of 1.5 billion Swiss francs (£1.38 billion), reflected on his affection for London, but lamented, “I’m a big fan of London and the UK. I frequently travel there, but looking at how the wealthy and the very wealthy are being taxed, it is strange and stupid.”
He asserted that the new tax policies concerning non-doms, confirmed in October 2022, have stifled the allure of the UK for foreign-domiciled residents. Previously, non-doms could pay a fee of either £30,000 or £60,000 to avoid taxation on foreign income. However, the new regulations enforce heavy taxation on all income after a mere four years of residency. Von Rosen condemned this approach as “a very stupid thing to do,” underscoring that wealthy individuals are now exploring alternative locales such as Dubai and the United States, where tax regimes are considerably more appealing.
He challenged Labour leaders, including Keir Starmer and Rachel Reeves, to reconsider the decision to eliminate the non-dom status, warning that the UK must remain competitive in the global financial arena to retain its wealthiest inhabitants. “You have to understand that there is worldwide competition… if the ultra-wealthy don’t go to the UK, they will go elsewhere,” he cautioned.
In addition to the troubling taxation concerns, Von Rosen highlighted changes in capital gains tax that deter investments in the UK. With rising apprehension regarding the market under the current government, he conveyed his hesitation to increase investments, suggesting, “With the current government, I would be very careful of investing more.”
The broader ramifications of these tax changes are stark, with the number of millionaires in London plummeting by 12% over the last decade, from 245,100 to 215,700. London, once a gold standard for the super-rich, has now fallen out of the top five cities for wealth, alongside Moscow—both cities witnessing a decline in their affluent populations since 2014. Prominent figures, including the so-called ‘gypsy billionaire’ Alfie Best and Pimlico Plumbers founder Charlie Mullins, have also exited the capital.
While Von Rosen acknowledges that some aspects of the non-dom regime are “unfair”—citing instances of paying less tax than Swiss nationals while residing in Verbier—he contends that retaining competitive non-dom policies is essential to persuade the wealthy to remain in the UK. “They just want to tax anyone that is successful, which is not the answer,” he emphasized.
He also noted that social attitudes in the UK could be influencing the mindset of the wealthy. He observed a cultural undercurrent of envy towards successful individuals, which he compared unfavourably to the more celebratory environment found in places like Dubai. “I find that jealousy gives people a reason to turn their back. Cars get scratched,” he remarked, illustrating a stark contrast to the more supportive ethos he perceives elsewhere.
The Treasury has been approached for comment regarding these pressing concerns raised by Von Rosen. The dialogue surrounding taxation and wealth retention in the UK remains a critical issue, one that continues to stir significant discussion among influential voices in the business community, reflecting broader anxieties about the persistent mismanagement of economic policy under the new Labour government.
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative refers to recent tax changes confirmed in October 2022 and discusses ongoing trends, indicating relatively current information. However, specific data on past years is included, which might be older news.
Quotes check
Score:
9
Notes:
The quotes appear original and are attributed to David von Rosen, directly referencing his statements. There’s no evidence of these exact quotes being previously published elsewhere online.
Source reliability
Score:
8
Notes:
The narrative originates from the Daily Mail, a known publication. However, its reliability can vary based on the topic and journalistic standards.
Plausability check
Score:
7
Notes:
The claims about tax policies and their impact on wealthy individuals are plausible but lack concrete evidence. The narrative reflects concerns commonly discussed in economic debates.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article appears current and includes original quotes, but it relies on information that could be influenced by ongoing economic debates. While the source is known, the plausibility of some claims requires additional verification to fully assess accuracy.
