Millionaire who lives in a castle to leave Britain to avoid paying more tax
A non-dom millionaire leaving Britain has warned that Rachel Reeves’ crackdown on the wealthy could lead to a recession.
Former Real Housewives of Toronto and businesswoman, Dr Ann Kaplan Mulholland told LBC that people “with deep pockets” are quitting the country – and small firms are struggling as a result.
Ms Reeves announced in last year’s Budget she was abolishing the non-dom regime – which allows UK taxpayers whose permanent home is overseas, to avoid paying taxes in the UK for 15 years.
Some reports have claimed that over 10,000 high-net-worth individuals left the UK last year as a result of tax changes, which have started to come in.
But the Treasury insists that clamping down on the unfair system of non-domiciled status will bring £33.8 billion extra to the Exchequer over the next five years.
A report by the Centre for Economics and Business Research this week has claimed that the changes will only bring in £2.5billion in the first year – compared to a forecast by the Office for Budget Responsibility of £10.3billion.
The plans were first announced under the Tory government – after then-PM Rishi Sunak faced a backlash over his wife Akshata Murthy’s tax affairs.
Labour made the move an election pledge in last year’s election.
Ms Reeves watered down the move earlier this year after a backlash – phasing the changes out over time instead of all at once.
LBC’s Political Editor, Natasha Clark, went to Dr Mullholland’s Lympne Castle in Kent, to find out why she says she has no choice but to move to Italy.
She said: “I’m leaving because of Reckless Reeves changes.
“Who would pay double tax? Tax there, and be taxed here? It makes no sense whatsoever.”
She claims it will cost her “millions” in tax to stay here and “it makes no business sense”.
“Whatever they are doing to calculate it is wrong.”
She and her husband Stephen moved to the UK from Canada after their children left home.
And the pair have been doing up the 139-achre Lympne Castle into a luxury hotel and wedding venue, which is due to formally open over the summer.
Dr Mulholland says she’ll head to Italy – where they make non-doms invest £200,000 per person, per year instead – either Milan or Capri.
However, she doesn’t like the idea of Italy, because she “don’t eat carbs”, adding: “There’s no choice of any kind of food there… I won’t go near a pizza.”
She adds of the Government’s thinking: “They thought everyone would stay and pay on worldwide income.
“I think the combination of moves from Rachel Reeves will tip into recession.
“Look at the number of businesses that have shut down recently in the last few months.
“Small businesses are not going to be able to sustain themselves.”
The businesswoman says to critics who say she should be prepared to pay more tax: “Rachel Reeves should say, pay more, but it’s the way she’s going about it.
“Sure, I’ll go, but before you say goodbye… It’s not me, it’s about everyone leaving who is no longer investing in the country.
“Listen to the people, and listen to the people who are leaving… The ship hasn’t sailed quite yet.”
The Treasury says that the changes will raise £33.8billion over the next five years, and that it will address unfairness in the system.
Under the new regime, new arrivals to the UK will benefit from 100% UK tax relief on their income outside the UK for the first four years that they are tax resident here, provided they have been non-tax resident for the previous 10 years.
Most former non-doms who become liable to pay tax on their worldwide income remain resident in the UK and continue to contribute, the government says.
The Treasury declined to comment on individual tax affairs.
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Credit to : LBC
