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Wealthy residents who register their permanent home overseas are fleeing the UK for locations such as the UAE over Labour’s promised clampdown on so-called non-doms, a city wealth lawyer has warned.
For more than 200 years, the system, which was recently overhauled by the Conservative government, allowed wealthy people to live in the UK and avoid paying tax on their overseas income.
But Labour – which looks set to win an overwhelming majority in Thursday's general election – has vowed to close the “non-dom tax loophole”.
The treasury security, Chancellor of the Exchequer Jeremy Hunt, announced in the spring budget the scheme would be replaced from 2025 and new residents would not be required to pay tax on foreign income and financial gains for only the first four years of their time in the UK. But after that period ends, those who choose to stay will pay the same rate of tax as other residents.
But Labour claimed the policy did not go far enough, saying as it stood non-doms would receive a discount of 50 per cent on the foreign income they bring into Britain in the first year.
Shadow chancellor Rachel Reeves said Labour would carry out a “crackdown” to make sure “every penny” goes into the National Health Service and schools.
In 2022, the then-chancellor Rishi Sunak's wife Akshata Murty, an Indian citizen, announced she would pay UK taxes on all her worldwide income after it was disclosed that she was non-domiciled in Britain for tax purposes.
Alessandro Belluzzo, a barrister and founding partner of Belluzzo International Partners, told The National: “We know with the Conservatives that they’re going to change it, they proposed the changes and the changes were quite clear. They are coming from the concept of domicile to residency.”
There is no clarity about what Labour will do, he added.
“Will Labour cancel completely all rules to attract international people? Because I am not talking about dom or non-dom,” said Mr Belluzzo.
“This concept is finished. It’s no longer applicable. What I am saying is, is the UK still a possible platform for international people? Will people be attracted by the UK? Is there any kind of plan Labour will put forward?"
If Labour cancels all proposals then the country might have a problem, he said.
“Many people who came to the UK were not British. But they have done pretty well here, so why cancel the attraction?” he added.
David Lesperance, a taxation and citizenship adviser, and managing director of Lesperance and Associates, told The National there are essentially two types of non-doms: foreign citizens who work in the City of London, who derive most of their income from the UK and are unlikely to leave as a result of Labour's new plan; and ultra high net worth individuals (UHNWIs), who are foreign citizens and almost certainly will leave.
UHNWIs do not need to remain in London to make or maintain their wealth and can arrange their affairs to ensure they have minimal foreign income.
"However, with Labour's announcement regarding protected and excluded property trusts, exposure of worldwide assets to 40 per cent inheritance tax is a major shove out the door for this group," Mr Lesperance said.
"As a result, they are highly likely to leave the UK."
Up to 30 per cent of current non-doms are predicted to leave, according to estimates.
Mr Belluzzo said he knows of families already fleeing the UK.
“If you talk to people they say there are many people moving now, because entrepreneurs, families, they don’t wait for the politicians to choose for them. They prefer to choose themselves if they decide the UK is less attractive for them,” he said.
Nom-doms are moving to places such as Italy, where Mr Belluzzo helped develop a flat rate of tax for non-domiciled residents of €100,000 ($107,320) in 2017, Monaco, Switzerland and the UAE, all of which offer incentives to wealthy investors looking to move.
Mr Belluzzo’s company recently opened an office in Dubai in response to requests from clients.
UK general election campaigning - in pictures
“I think the system is very well organised. People are going there,” he said.
“And they are going there for the same reasons people were coming to the UK 20 or 30 years ago, for an opportunity, for business, because they see there is an openness to business.
“And we see a lot of people moving to Dubai and Abu Dhabi, to the region.”
Mr Belluzzo said Labour should signal that it is open to international investors in the early days of a new government, if it is successful in the general election on Thursday.
He said the UK has always been a welcoming country and he wants it to remain competitive.
“Labour is just saying we will scrap the non-doms and that’s it.
“But are they going to do something else afterwards? I believe so. I hope so.”
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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MATCH INFO
Karnataka Tuskers 110-5 (10 ovs)
Tharanga 48, Shafiq 34, Rampaul 2-16
Delhi Bulls 91-8 (10 ovs)
Mathews 31, Rimmington 3-28
Karnataka Tuskers win by 19 runs
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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South Korea
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
AL%20BOOM
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Profile Idealz
Company: Idealz
Founded: January 2018
Based: Dubai
Sector: E-commerce
Size: (employees): 22
Investors: Co-founders and Venture Partners (9 per cent)
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
UAE currency: the story behind the money in your pockets
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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Killing of Qassem Suleimani
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Mercedes-AMG GT 63 S E Performance: the specs
Engine: 4.0-litre twin-turbo V8 plus rear-mounted electric motor
Power: 843hp at N/A rpm
Torque: 1470Nm N/A rpm
Transmission: 9-speed auto
Fuel consumption: 8.6L/100km
On sale: October to December
Price: From Dh875,000 (estimate)
The years Ramadan fell in May
Pakistan Super League
Previous winners
2016 Islamabad United
2017 Peshawar Zalmi
2018 Islamabad United
2019 Quetta Gladiators
Most runs Kamran Akmal – 1,286
Most wickets Wahab Riaz –65