Farage proposes £250k tax break for non-doms, triggering backlash over ‘billionaire loophole’

Report UK has unveiled a new controversial policy that would allow wealthy unresolved individuals to avoid the UK tax legally on foreign profits, income, capital gains and inheritance-for a single-time payment of 250,000 pounds every 10 years.

The so -called “British Card”, announced by the leader of reform, Nigel Faraj, is marketed as a means to attract “tens of thousands” of high -value individuals to Britain by providing tax certainty and long -term exemption from UK taxes on external wealth.

Faraj said that the initiative “will bring the creators of jobs and risk providers”, who, despite their exemption from some taxes, will continue to contribute greatly to the economy through spending, investment, duty of stamp and value -added tax.

But politics has sparked strong criticism through the political spectrum and major economists, as the Labor Party described it as a “golden ticket for foreign billionaires” and the Institute of Financial Studies (IFS) a warning that the plan is “out of clear” in terms of generating any net revenues.

Fixed fees for a comprehensive tax relief

According to the proposed plan, those who granted the British Card will pay a fee of 250,000 pounds once every 10 years for:
• Full exemption from UK tax on foreign income, wealth, capital gains and inheritance
• There is no condition for paying the inheritance tax in the United Kingdom
• There is no other tax responsibility for external profits, even while living in the United Kingdom

Report UK claims that the scheme will collect between 1.5 billion pounds and 2.5 billion pounds annually, while redistributing all tax revenues from taxes to the 10 % of UK workers full time, which may add 600-1000 pounds per person per year.

However, IFS and other tax experts say this is unlikely to add. Stewart Adam, senior economists at IFS, warned that the cabinet would lose more tax that was avoided from those who would pay the UK tax anyway more than it might gain from flat fees worth 250 thousand pounds. “The fact that someone is ready to pay a quarter of a million to avoid the UK tax tells you the amount it provides – and this may be much more than the government will receive,” he said.

Dan Nidel of the tax policy said that policy may cost the UK 34 billion pounds over a period of five years, citing the budget responsibility estimates. He also warned that the redistribution element was misleading, because many lower income families are not in full -time action and will be excluded.

“There is a real danger that this policy will not help the poorest, but it will create a surprise to a narrow segment of workers while allowing wealthy taxis in taxes,” he said.

Who wins – and who may lose?

While Farraj argues that the move will return capital and talent to the United Kingdom, critics say it will undermine confidence in the tax system, and to inhibit highly skilled foreign professionals, but less richer than moving to Britain, and perhaps the real estate market that is already in London.

In response to a question about this matter, Faraj acknowledged that increasing demand from wealthy individuals may affect real estate prices, but he insisted that it would not affect the cost of well -known housing.

Policy also risks to rid the UK with other advanced economies, many of which move in the opposite direction by tightening rules to avoid taxes and increase transparency of global wealth.

The reverse reaction was quickly. Labor Party Adviser Rachel Reeves said that the proposal was a “tax reduction for foreign billionaires” that will ultimately need to pay in exchange for discounts for public services or tax increases on working families.

“Nigel Farage can distinguish this as he likes-but this is the billionaire charter that will make Britain a tax haven for the wealthy while undermining funding for NHS and school presenters,” added a spokesman for the Labor Party.

The conservative shadow adviser Melt will want to criticize and describe the “imagination economy” policy. “Only Kimi Badnouch and the conservatives believe in the financial responsibility that our country needs,” he said.

This policy comes at a time when the UK is preparing to cancel the current regime, which has allowed for years of the wealthy population to protect their foreign profits from the UK tax by demanding permanent residence elsewhere.

Under the new work rules, it is scheduled to enter into force in 2026, taxes will be imposed on all UK residents on global income after four years. The government says that this will collect 12.7 billion pounds over a period of five years – an amount that many argue that it is necessary to finance public services.

Refire UK’s counter -reform seems to be designed to attract the British class in the field of entrepreneurship and the global elite, but the risks that enhance voters they see as a tax break for super winds at the expense of the wider population.

While Farage insists that the policy of a flat sense of 250,000 pounds is a pragmatic step to restore wealth and investment to the United Kingdom, critics argue that it amounts to a reactionary gift that can lead to expanding inequality, reduces revenues, and damages the public’s confidence in fairness of the tax system.

This policy may activate parts of the business community, but with an audit of its economic capacity and distribution impact, it can become a Limous test of the UK’s credibility of reform as a dangerous financial alternative.