Investing.com -- UK Chancellor Rachel Reeves' proposed adjustments to the contentious non-dom reforms have failed to reassure global investors and High Net Worth Individuals (HNWIs), according to Nigel Green, CEO of the global financial advisory giant, deVere Group.
Reeves made an announcement at the World Economic Forum in Davos, suggesting potential amendments to the Finance Bill, which could eliminate some of the controversial aspects of the non-dom taxation changes. However, the lack of detail in her proposal has been met with skepticism.
Green has voiced concerns over the impact of these policies on the UK's global competitiveness, stating that the proposed changes do not provide the clarity or assurance required to mitigate the damage already done. He described the announcement as an indication of the government's failure to understand the broader implications rather than a genuine attempt to rebuild trust.
The CEO of deVere Group further stated that the UK's reputation for stability and predictability, which has attracted global talent and wealth creators for decades, has been steadily compromised. He expressed that the proposed measures will not be sufficient to restore confidence.
The UK's non-dom tax system, once a major attraction for internationally mobile individuals, has seen its advantages diminish in recent years due to sudden changes, inconsistent communication, and a perceived disconnect between policymakers and the global financial community.
Green highlighted that the uncertainty surrounding these tax changes is causing frustration and fatigue among clients, making future planning impossible. He added that many are now actively seeking jurisdictions that prioritize predictability and fairness.
The effects of this uncertainty are already impacting sectors dependent on global wealth, including luxury property markets and financial services. Reeves' reluctance to provide specific details on her proposed amendments further exacerbates the issue, indicating to HNWIs and investors that the government is not attuned to the needs of this critical demographic.
Green emphasized that for the UK to maintain its status as a global wealth hub, it needs to engage directly with industry stakeholders and establish a clear, competitive, and sustainable tax regime. Without this, the UK risks alienating the individuals and businesses that drive innovation and investment.
The absence of a decisive and forward-thinking approach raises questions about the UK's future global positioning. Green concluded that without bold action, the UK risks solidifying its image as a jurisdiction characterized by uncertainty.
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