Nigel Farage’s proposal to lure wealthy individuals back to the UK with a one-off tax deal could cost the country £34 billion annually, warns leading tax expert Dan Neidle.
The Reform UK leader has outlined a plan to introduce a “Britannia card” — a £250,000 flat fee for rich individuals — as an alternative to the non-dom regime recently scrapped by both Conservative and Labour chancellors.
Reform UK claims the scheme could generate £2.5 billion a year, which would be used to pay a £1,000 annual dividend to low-income earners. However, Neidle, founder of Tax Policy Associates, has raised serious concerns about the financial impact.
“We believe there are three major problems with this policy,” said Neidle.
Key Criticisms:
- Discourages Talent – The high entry fee and tax uncertainty would deter skilled professionals, making the UK less competitive than peer nations.
- Limited Appeal – Given recent changes to non-dom rules, it’s unlikely the super-rich would trust the Britannia card as a genuine long-term tax shelter.
- Massive Revenue Loss – Existing wealthy residents would benefit most, creating a tax break worth £34bn over five years — a gap that would have to be filled by either spending cuts or tax hikes.
Despite the warnings, Farage and former Reform chairman Zia Yusuf defended the plan, insisting it is already attracting interest and would bring “new money” into the UK.
Farage criticized the prevailing attitude of taxing the rich, saying: “Successive governments have ignored how mobile wealthy people are. In the last year alone, 10,800 wealthy individuals left the UK.”
Yusuf echoed the concerns, stating that current tax policies are driving away investment and entrepreneurship. Citing Bloomberg, he noted that around 4,000 company directors have left the UK since Labour took office.
He also pointed out that non-doms previously contributed over £8.9 billion annually through various taxes.
Yusuf concluded: “This card will be open to wealthy foreigners willing to invest and take risks in the UK. The landing fee will make an immediate contribution to the economy and directly benefit the lowest-paid workers.” Photo by Gage Skidmore from Peoria, AZ, United States of America, Wikimedia commons.