Key Takeaways
- • HMRC is assigning a Customer Compliance Manager to each of more than 200 identified billionaires with a UK financial footprint, as part of a crackdown intended to raise £500m, according to The National.
- • The Treasury will levy a 15 per cent tax on rental income from UK real estate held by state-backed sovereign wealth funds that were previously exempt, expected to raise about £700 million ($932 million) by 2029-30.
- • The HMRC wealthy tax gap was £3.6 billion in 2024-25, covering 1.3 million people with income over £200,000 or assets over £2 million in any of the last three years.
- • Industry experts warn the measures risk further damaging Britain's appeal to wealthy and internationally mobile investors, with thousands of millionaires having already left for jurisdictions such as Monaco and the UAE.
- • The Office for Budget Responsibility described its revenue estimates for the sovereign fund levy as highly uncertain due to a lack of data.
Summary
HM Revenue and Customs (HMRC) announced after Wednesday's budget that it will allocate a Customer Compliance Manager to every billionaire it has identified with a financial footprint in the UK, according to The National. The crackdown is intended to raise £500m. HMRC has used "enhanced wealth identification approaches" since the summer, combining data from its own systems and third parties, to build a list of billionaires it believes must pay UK tax regardless of residence. The agency aims to close a "wealthy tax gap" that in 2024-25 stood at £3.6 billion below what it calculated should have been paid by the 1.3 million people identified as wealthy.
Chancellor John Healey's first budget offered perks to local entrepreneurs but included few measures to attract ultra-wealthy individuals, despite the UK having explored such steps earlier this year. The most notable new revenue measure targets state-backed funds. Sovereign wealth funds previously exempt from tax on UK rental income will now pay 15 per cent, according to Treasury documents, which project about £700 million ($932 million) by 2029-30. Affected property includes parts of Regent Street and Canary Wharf. Norway owns most of Regent Street and holds stakes in Covent Garden, Soho, Chinatown and Mayfair, while the Qatar Investment Authority is a joint owner of Canary Wharf Group. The Office for Budget Responsibility said its estimates include behavioural effects and an attrition adjustment, but described the costing as "highly uncertain" given limited data. Simmons & Simmons partner Zoë Arnautov called the change "significant and unexpected."
Industry voices warned the measures could damage Britain's standing as a destination for wealth. Becky Fatemi, executive partner of UK Sotheby's International Realty, said the sovereign fund levy risks discouraging billions of pounds of investment and could affect London's super-prime residential market. Iain Tait of W1M and Harinder Hundle of Hundle also raised concerns about the UK's attractiveness for wealth. Since the 2024 budget, thousands of millionaires have reportedly left Britain for countries such as Monaco and the UAE. Among those cited were Nassef Sawiris, Guillaume Pousaz and hedge fund founder Chris Rokos, who is relocating to Greece. Richard Desmond has restructured his holdings after moving to the UAE last year.
The budget also confirmed a foreign tax credit to ease punitive rates for British residents receiving income from US entities, effective from 2028. Separately, speculation over higher capital gains taxes has prompted UK entrepreneurs to rush stake sales before any change, and preferential treatment for certain founder stake sales starting next year may not benefit transactions already under way. Prime Minister Andy Burnham's government, which succeeded Keir Starmer's, has continued reshaping the UK's relationship with high-net-worth residents following tax reforms introduced in April 2025.
Chancellor John Healey's first budget offered perks to local entrepreneurs but included few measures to attract ultra-wealthy individuals, despite the UK having explored such steps earlier this year. The most notable new revenue measure targets state-backed funds. Sovereign wealth funds previously exempt from tax on UK rental income will now pay 15 per cent, according to Treasury documents, which project about £700 million ($932 million) by 2029-30. Affected property includes parts of Regent Street and Canary Wharf. Norway owns most of Regent Street and holds stakes in Covent Garden, Soho, Chinatown and Mayfair, while the Qatar Investment Authority is a joint owner of Canary Wharf Group. The Office for Budget Responsibility said its estimates include behavioural effects and an attrition adjustment, but described the costing as "highly uncertain" given limited data. Simmons & Simmons partner Zoë Arnautov called the change "significant and unexpected."
Industry voices warned the measures could damage Britain's standing as a destination for wealth. Becky Fatemi, executive partner of UK Sotheby's International Realty, said the sovereign fund levy risks discouraging billions of pounds of investment and could affect London's super-prime residential market. Iain Tait of W1M and Harinder Hundle of Hundle also raised concerns about the UK's attractiveness for wealth. Since the 2024 budget, thousands of millionaires have reportedly left Britain for countries such as Monaco and the UAE. Among those cited were Nassef Sawiris, Guillaume Pousaz and hedge fund founder Chris Rokos, who is relocating to Greece. Richard Desmond has restructured his holdings after moving to the UAE last year.
The budget also confirmed a foreign tax credit to ease punitive rates for British residents receiving income from US entities, effective from 2028. Separately, speculation over higher capital gains taxes has prompted UK entrepreneurs to rush stake sales before any change, and preferential treatment for certain founder stake sales starting next year may not benefit transactions already under way. Prime Minister Andy Burnham's government, which succeeded Keir Starmer's, has continued reshaping the UK's relationship with high-net-worth residents following tax reforms introduced in April 2025.
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