Three in 10 people earning more than £5 million have applied for non-resident status, compared with fewer than three in 1,000 people earning less than £100,000.
The Office for Budget Responsibility, the official forecasting agency, expects that forced tax levies will cause 10-20% of non-residents to leave the UK, but the figure could actually be higher.
Elphick added: “An Israeli client told me last week that he was fed up with the tax changes and would probably move to Monaco, Switzerland or Dubai as a result.”
“This individual is paying income tax and capital gains tax of £13 million a year in the UK and has been doing so for 15 years.”
Unlike UK domiciled individuals, individuals who are resident in the UK but have a permanent home in another country can avoid paying tax on their foreign income and gains.
But from April 2025, new arrivals to the UK will only benefit from this tax cut for four years, after which they will have to pay the same tax as UK residents.
Others already based here will also face significant tax increases once the new system comes into force.
An estimated 5,500 non-residents are currently excluded from a four-year tax cut and will face an immediate tax increase under rule changes next year, according to government figures.
Simon Goldring, of Exelo law firm, said: “My clients are not happy. They are being faced with a stark choice: stay in the UK and be taxed, or leave. Some have had their financial structures completely destroyed. They should leave while they still can.”
