The Golden Geese are heading south, east & west

Stuart Stobie • July 1, 2024
A goose is flying through the air with its wings spread.

The Golden Goose is heading south, east, west…


Over the years, there has been a lot of talk of Golden Geese and beware the results if you do not cosset them. Hong Kong at the handover springs to mind, waste of oil wealth and specific to the UK the treatment of non UK domiciles and now millionaires in general.


There is an assumption by most political parties that taxation is not the main trigger for the wealthy people seeking to leave the UK. One of the rationales for this thinking was expressed in a London School Economics International Inequalities Institute’s paper earlier this year.


The LSE’s paper argued that tax was not behind why wealthy persons might be leaving UK. That in fact, they would be prepared to suffer the tax rather than move to a “culturally barren” tax haven.


Basically, the research was saying that millionaires would not move whatever the tax rates as the UK has better theatres.


How did LSE come to the conclusion that millionaires will not be departing the UK in droves if there are tax increases.  


They interviewed focussed on the top 1% of income or wealth and from that segment, they interviewed 35 people. This seems to ignore the plethora of wealthy people below this threshold who might also have a view on remaining in the UK if the tax environment changed for the worse.


The reasons highlighted in the report for not moving were that other factors, such as family, social and reputation, outweighed the tax factor when it came to making a decision to leave the UK’s shores.


In otherwords, changing the tax regime will not mean a sudden exodus of the wealthy from the UK. 


This conclusion has been regularly countered by those in the tax industry but was deemed as scare mongering.  


There is now research recently published by one of leading experts in immigration, that there is a major hole in the argument that millionaires are not leaving the en masse.  


The research undertaken shows that 9,500 millionaires will leave the UK by the end of 2024. That makes the UK number two in the loss of millionaire charts, one behind China.


From the research it is not exactly clear why millionaires are leaving, they may be myriad. One can take a conclusion that the threatening of the non domicile regime and potential tax hikes has increased number of wealthy people leaving the UK.


So where are they all going? It is not surprising that the wealthy are moving to countries with formal investment programmes so that the rich immigrants know how they will be treated for tax.


One of the primary beneficiaries of inward migration is the UAE. The UAE is seen as wealth friendly with well known and well administered immigration schemes. This means by the end of 2024, the UAE will received 6,700 migrants.  


An article in the Guardian by Nels Abbey entitled “Britain’s millionaires fleeing. Good night and good luck” seems to underline a certain sentiment that Britain will be better off without the wealthy whom are invariably the wealth creators.


But is this tax them and be damned approach a good one? By comparison to the 600,000 plus millionaires in the UK, this loss is not much. Unfortunately it’s a growing trend and a worrying one.


Articles like the one in the Guardian, ignore the fact that the top 1% pay 30% of the taxes. Add to this fact that 50% of persons of working age receive more benefits than they pay in tax. It is vital, especially if you take into account our aging population, that the tax base is not eroded.


You can think what you like and come up with a multitude of reasons to dislike the wealthy but if you want to pay for things like roads, hospitals, education, you need their taxes and the data quite clearly says the wealthy pay the most.


The data shows that the wealthy are leaving the UK for jurisdictions with more attractive tax regimes. And also, the likes of Dubai have a lot more to offer in addition to its tax regime so the wealthy will not be deprived of social and cultural opportunities.


It is also not because of recent pronouncements on the non domicile regime and it being an election year, the UK has lost 8% of millionaires since 2013. This is a trend and the issue of taxation cannot be ignored.


The countering of the findings of the LSE report versus the data showing the upward trend in millionaires leaving the UK, does means policymakers need to consider tax policies that mean the wealthy see no need to move abroad whilst contributing to Government coffers. Otherwise the golden goose might just fly south for good.

BREAKING NEWS: UAE Offers Corporate Tax Penalty Relief – But You Must Act Fast to Qualify

By Amie Roberts • May 1, 2025
If you’ve missed your Corporate Tax registration deadline or already paid the AED 10,000 fine, there’s now a golden opportunity to waive or reclaim that penalty — but only if you act quickly. In a recent move to support businesses during the first year of the UAE’s Corporate Tax rollout, the Federal Tax Authority (FTA) has announced a limited-time grace period. The initiative allows eligible businesses to apply for a full penalty waiver if they file their Corporate Tax return early. This is a major relief for thousands of companies who have either: Missed their Corporate Tax registration deadline, or Registered late and were hit with the AED 10,000 fine Why is this happening? According to Gulf News, this initiative is part of a broader effort by the Ministry of Finance and the FTA to ease the transition into the new Corporate Tax system and promote long-term compliance. What You Need to Know: Deadline for the waiver: July 31, 2025 BUT: You must file your return well ahead of your official tax deadline to qualify. Don’t wait – gathering your financial records and preparing your tax return can take time. For most businesses operating on a calendar year basis (Jan–Dec), that means filing within the next couple of months. Who qualifies for the penalty waiver? If you’re asking: “Can I get a refund on my Corporate Tax late registration fine in the UAE?” “Is it possible to waive the AED 10,000 Corporate Tax penalty?” “How do I apply for the UAE Corporate Tax penalty relief?” Then the answer is – yes, you may be eligible. But there’s a catch: you must file your tax return early, ahead of your normal deadline. This is not automatic, and if you miss the window, the fine will not be waived or refunded. Why early filing matters: The FTA has made it clear: early compliance is the only route to relief. This means: Completing your Corporate Tax registration (if not already done) Preparing your financials for your first tax year Submitting your Corporate Tax return well before the deadline This one-time waiver won’t be repeated – so don’t leave it until the last minute. How Mosaic Chambers Group can help: At Mosaic Chambers Group, our FTA-certified tax advisors and legal consultants are ready to guide you through the entire process. Whether you need help: Understanding your eligibility Filing your Corporate Tax return early Claiming your AED 10,000 fine refund Or ensuring future tax compliance We’re here to take the stress out of Corporate Tax. Book a free consultation today and get expert support from our team. Click here to get in touch or below to book your call.

End of the Non-Dom Era: Labour’s Tax Reform Triggers Wealth Flight

April 15, 2025
April 6th, 2025 marks the beginning of a major shift in UK taxation. Labour’s new tax reforms have officially scrapped the long-standing non-domiciled (non-dom) tax status — a move that targets wealthy individuals who live in the UK but, under the new non dom regime, have been able to mitigate UK tax on their overseas income and gains. This change spells the end of a tax break that attracted many high-net-worth individuals (HNWIs) to the UK and is already causing ripples across the country’s elite financial circles. The message is clear: if you live here, you pay here. Let's break down what has changed. What Was the Non-Dom Tax Regime? The non-dom tax regime allowed individuals residing in the UK, who claimed their primary home (domicile) to be outside the UK, to avoid UK income and capital gains taxes by not bringing any foreign earnings or gains back into the UK. This system made the UK an attractive location for individuals with international earnings. We covered this in more detail here. What Has Changed? Since 2025-26 tax year, the government has implemented several significant reforms. These reforms include: 1. End of Non-Dom Status All UK tax residents will now owe UK income tax on all global income and gains, regardless of whether these were brought into the country or not. 2. Inheritance Tax (IHT) on Foreign Assets Non-doms could previously avoid UK Inheritance Tax on assets they held outside the UK; now individuals who have lived here for more than four years will be liable for IHT on all their global estate assets. 3. Temporary Reliefs To assist the transition, temporary measures include the following: Tax Year 2025-26 will see a 50% reduction on foreign income tax. Capital Gains Tax (CGT) laws allow us to rebase overseas assets based on their value as of April 2019 for CGT purposes. Temporarily, bringing money from abroad may not incur full tax charges upon entering the UK. Why Has the Government Made These Changes? According to Labour, eliminating non-dom status will provide many advantages: Enhance tax fairness Raise extra funds to support public services Close longstanding loopholes used by the wealthy Rising Tax Bills HNWIs with overseas assets and income will now face significantly increased tax obligations that may have an effect on personal finances, family planning and wealth transference. Making Decisions About Moving Abroad Some individuals are already leaving the UK in order to settle in countries with more advantageous tax regimes. Some common destinations for relocation include: United Arab Emirates (UAE) does not levy income or capital gains tax Switzerland provides fixed annual tax arrangements for its most wealthy citizens Italy - flat tax of EUR100,000.000 on foreign income for new residents Monaco does not levy personal income tax for residents Concerns Raised About Impact Within Industry Concerns are being expressed that this could lead to a decrease in: Investment into UK businesses Jobs funded by private wealth Donations to UK Charities What About Entrepreneurs? Many entrepreneurs utilise non-dom status to reduce tax on international business earnings, however, these changes could require: Establishing headquarters or structures outside the UK Reconsider ownership of intellectual property or company shares An investigation of how profits and dividends are managed is important to ensure long-term growth. What Should Be Done Now? If you or those you work with have been affected, taking immediate steps is key to their safety. Here are a few things you can do. 1. Consult With A Specialist Tax Advisor Every situation varies. Seek tailored guidance from someone familiar with both UK and international tax regulations. 2. Evaluate Your Financial Structures Evaluate how you hold assets - for instance through offshore companies or trusts. Any necessary changes must be implemented for optimal efficiency and compliance purposes. 3. Consider Relocating If the UK's new tax rules no longer suit, you might wish to explore living elsewhere where tax liabilities would be lower. Be sure to carefully consider all legal, financial, and family aspects prior to making any decisions. Summary The changes to the non-dom tax regime mark a profound transformation for those who rely on global income and wealth for tax payments, especially those living abroad. Although intended to increase fairness, these reforms also pose challenges to those accustomed to using it. Now is the time to review your plans, secure your assets, and seek professional guidance. How Can We Assist? At our offices in both the UK and UAE, we assist individuals, entrepreneurs and professional advisors in making well-informed decisions. If you have any queries about this article or need advice then get in touch.
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