A gold card for non-doms can secure London’s position as a global hub
With it’s world class education system, robust rule of law and central time zone, London is still the best place in the world to be a non-dom, says Duncan MacIntyre
From Ann Kaplan Mulholland and her husband Dr Stephen Mulholland to Lakshmi Mittal and Frederic de Mevius, multi-millionaires and billionaires have been making headlines in the UK – not because of the successes and growth they are bringing to their adoptive homeland, but because they are leaving.
The idea of a “brain drain” of wealthy individuals from our shores understandably raises alarm. The recent abolition of the non-dom tax regime has prompted some to seek pastures new, spurred by fears of increased tax burdens, especially on inherited wealth and money earned or held overseas. Despite recent speculation around potential changes to the decision to charge UK inheritance tax on non-doms’ global assets, we have witnessed a shift within the private banking sphere in London, with some clients indeed making plans to relocate or diversify their holdings.
However, to paint a picture of wholesale exodus and irreversible decline would be to miss a more nuanced and optimistic reality. While policy changes have created ripples, the fundamental strengths that have long made the UK – and London in particular – a magnet for global wealth remain firmly in place.
London is a global hub
Despite the non-dom changes, the UK’s intrinsic appeal as a global hub endures. Our world-class education system continues to attract families seeking the best for their children. The robust rule of law provides a bedrock of security and trust for international investors. And London’s vibrant entrepreneurial ecosystem fosters innovation and opportunity, drawing ambitious individuals from across the globe. This is a rare combination of characteristics that continues to exert a powerful pull, transcending headline tax rates.
UK wealth managers are seeing a marked increase in enquiries and asset transfers from US-based investors, while according to agency Knight Frank, Americans surpassed Chinese nationals as the largest cohort of overseas buyers in prime central London in the last quarter of 2024
There are even suggestions that the UK’s appeal to certain groups is stronger than ever, not least Americans. UK wealth managers are seeing a marked increase in enquiries and asset transfers from US-based investors, while according to agency Knight Frank, Americans surpassed Chinese nationals as the largest cohort of overseas buyers in prime central London in the last quarter of 2024. At the same time, UK academic institutions are seeking to lure high-quality minds from the US in critical spaces such as AI and bio-medicine, in the face of potential funding cuts in the US – an argument that counters the recent “brain-drain” rhetoric. Driven by “safety and security concerns” related to the political climate across the Atlantic, these individuals are seeking the stability and established financial infrastructure that the UK offers. This influx demonstrates that London’s reputation as a safe haven and sophisticated financial centre remains strong, even amidst domestic policy adjustments.
Bring back the investor visa
Add initiatives such as the Berne Agreement, an equivalence agreement between the UK and Switzerland which aims to boost competitiveness and foster cooperation between the financial centres, to the new Foreign Income and Gains regime, which is intended to simplify the tax system and is incentivising wealthy Britons living abroad to return home – there is a wave of optimism that should not be underestimated.
Yet, the UK could amplify this positive trend by proactively attracting even more international wealth. The abolition of the investor visa in 2022 has limited routes for affluent individuals to establish themselves here. A re-introduction of this scheme akin to the US “gold card” – could offer a compelling solution for individuals looking to establish themselves in the UK. By offering a clear incentive, such as taxation solely on UK-sourced income in exchange for a significant investment, the government could actively lure high-net-worth individuals and their capital to our shores.
The UK possesses unique advantages: its cultural cachet, its central time zone, its ease of doing business and its unparalleled educational and medical resources. Leveraging these strengths with a strategic investor visa programme could not only offset any potential outflow of wealth but actively bolster the UK’s economic standing.
The narrative of a simple “brain drain” is incomplete. While adjustments are underway, London’s fundamental magnetism persists. By embracing a forward-thinking approach and actively seeking to attract global wealth through a well-designed investor visa, the UK can not only weather the current changes, but solidify its position as a leading global hub for generations to come. The opportunity is there; it is time to seize it.
Duncan MacIntyre is global UK region head and partner at Lombard Odier