Rachel Reeves, the UK Chancellor, is reportedly considering a landmark tax policy change that would impose a 20% 'exit tax' on the UK assets of wealthy individuals who permanently relocate abroad. This new measure, referred to by the Treasury as a “settling-up charge,” is designed to close a significant loophole in the current system and is projected to raise approximately £2 billion for public coffers.

 

The proposal targets individuals who leave the UK for low-tax jurisdictions, such as Dubai. Under current rules, while they remain liable for the 20% capital gains tax (CGT) on the sale of property and land, they can often sell other substantial assets, like shares in companies, tax-free once they have formally departed. The settling-up charge would apply the 20% tax to the value of these specific assets at the point of exit, ensuring gains are taxed before the person leaves the UK. This aligns UK tax policy with the practices of most other G7 nations, where such an exit charge is already standard.

 

However, implementing the change carries a significant risk: the immediate announcement of the tax could trigger capital flight, where wealthy expats rush to liquidate their holdings and leave the country before the new rule takes effect. To mitigate this, the government may choose to introduce the charge with immediate effect upon announcement.

 

To maintain fairness and symmetry, the measure would likely be paired with a policy encouraging investment: new arrivals to the UK would no longer have to pay Capital Gains Tax on investment profits accrued before they took up residence. This balanced approach aims to both secure tax revenue from those leaving and attract new international investors to the UK. The "settling-up charge" is currently one of several options being modeled by the Treasury ahead of the forthcoming budget, with no final decisions yet announced by Rachel Reeves.

 

Key Takeaways

Core Policy: Rachel Reeves is considering a 20% 'settling-up charge' on the value of specific non-property UK assets (like shares) held by high-net-worth individuals who decide to leave the country permanently.

 

Revenue and Alignment: The exit tax is projected to raise £2 billion for the government and would align the UK’s tax policy with that of the majority of its G7 counterparts.

 

Risk vs. Reward: While the proposal closes a capital gains tax loophole, it carries the risk of prompt capital flight. The Treasury may counter this by immediate implementation and a reciprocal tax break for incoming international investors.

 

Original Sourcehttps://www.theguardian.com/politics/2025/nov/01/rachel-reeves-considers-20-tax-on-assets-of-people-deciding-to-leave-uk

 

 

That shouldn’t affect the majority I come into contact with.

This coming from the tax-dodging chancellor! You can’t make this S up! Hilarious. Get out quick, lads. That place is proper *deleted*

Bloated western governments are searching the  couches for coins.

I wonder where Rachel gets her tax ideas from? 

 

I had a friend that escaped South Africa in the 90's. They had tax laws that prevented anybody leaving from taking any significant wealth with them. I helped her dismantle her 1972 Evinrude 60 horsepower 2-stroke outboard engine to recover a bag of diamonds.

 

That's where Reeves and Starmer are taking the People's Democratic Republic of the DisUnited Kingdom.

 

How long before the migrant boats are headed in the opposite direction? 

The idiot might get some money initially through this scam but will probably lose money long term as wealthy people see the UK as not worth residence.

30 minutes ago, Gsxrnz said:

I wonder where Rachel gets her tax ideas from? 

 

There’s a clue in the OP:

 

1 hour ago, Bacon1 said:

Revenue and Alignment: The exit tax is projected to raise £2 billion for the government and would align the UK’s tax policy with that of the majority of its G7 counterparts.

 

29 minutes ago, Chomper Higgot said:

There’s a clue in the OP:

 

 

Align with the rest of the broke ass G7 welfare states.

Abbreviated offensive post removed.

 

@FruitPudding

Ay up, the pauper boomers are in the house lol…

 

😂

1 hour ago, Chomper Higgot said:

There’s a clue in the OP:

 

 

Alignment is always a worthwhile consideration.

How about the pensions.

 

The UK devotes a smaller percentage of its GDP to state pensions and pensioner benefits than most other advanced economies. 

https://commonslibrary.parliament.uk/research-briefings/sn00290/

49 minutes ago, sandyf said:

Alignment is always a worthwhile consideration.

How about the pensions.

 

The UK devotes a smaller percentage of its GDP to state pensions and pensioner benefits than most other advanced economies. 

https://commonslibrary.parliament.uk/research-briefings/sn00290/

Can the UK afford it?

OMG

57 minutes ago, sandyf said:

Alignment is always a worthwhile consideration.

How about the pensions.

 

The UK devotes a smaller percentage of its GDP to state pensions and pensioner benefits than most other advanced economies. 

 

Since 2012, pensioners' average incomes in the UK have been greater than the incomes of workers. The last group that needs any help is pensioners.

 

For the first time in their lives, Boomers are not seeing everything go their way, and you are shocked.

 

 

 

1 minute ago, Gaccha said:

 

Since 2012, pensioners' average incomes in the UK have been greater than the incomes of workers. The last group that needs any help is pensioners.

 

For the first time in their lives, Boomers are not seeing everything go their way, and you are shocked.

 

 

 

In the USA the early boomers and the pre boomers are leaving a mess for the young kids 

8 minutes ago, Gaccha said:

For the first time in their lives, Boomers are not seeing everything go their way, and you are shocked.

Things didn't come our way, we got off our arses to get them. But that we had the energy to do that, and Gens XYZ not, saddens me.

Out of interest - by show of thumbs, lol- who agrees with this tax?

27 minutes ago, Peter Crow said:

Things didn't come our way, we got off our arses to get them

 

They literally all came your way. And then you gamed the system in your favour. Let's run through your easy life:

 

1. House prices were peanuts as a ratio of your salary: 

 

 

2. You then enjoyed high inflation which wiped out your house debt: 

 

 

3. And then (!) you voted yourselves low taxes by wasting oil revenue on tax cuts instead of creating a long-term wealth fund, like the enormous Norwegian wealth fund:

 

 

4. And this ignores you receiving final-salary pensions, something unknown in the private sector today.

 

5 hours ago, Bacon1 said:

tax policy change that would impose a 20% 'exit tax' on the UK assets of wealthy individuals who permanently relocate abroad.

Then, if you come to Thailand, they freeze your pension.  (Mine is 50% of the going rate after 44 years of service). 

Then they tax the interest on your savings in a UK bank. 

Then the British currency is nose-diving, certainly v Thai baht.

4 hours ago, TedG said:

Bloated western governments are searching the  couches for coins.

The “immigrants”. must be taken care of.

 

Just like America

How about a tax on immigrants entering the UK.

 

 

1 hour ago, Gaccha said:

 

Since 2012, pensioners' average incomes in the UK have been greater than the incomes of workers. The last group that needs any help is pensioners.

 

For the first time in their lives, Boomers are not seeing everything go their way, and you are shocked.

 

 

 

 

If you don't identify your reference properly it may be taken to be bs.

1 hour ago, Gaccha said:

 

They literally all came your way. And then you gamed the system in your favour. Let's run through your easy life:

 

1. House prices were peanuts as a ratio of your salary: 

 

 

2. You then enjoyed high inflation which wiped out your house debt: 

 

 

3. And then (!) you voted yourselves low taxes by wasting oil revenue on tax cuts instead of creating a long-term wealth fund, like the enormous Norwegian wealth fund:

 

 

4. And this ignores you receiving final-salary pensions, something unknown in the private sector today.

 

 

You just did it again!

19 minutes ago, nauseus said:

If you don't identify your reference properly it may be taken to be bs.

 

I put a giant screenshot of the reference in my first post: The Economist. 

 

 

 

The trick to that is attempting to collect.  If you're that wealthy, you can find ways to avoid the tax.  In the meanwhile, the UK loses more of its "wealthy" folks (good riddance). 

1 hour ago, nauseus said:

 

If you don't identify your reference properly it may be taken to be bs.

@nauseus  The source is adequately referenced.

But here's the link - it's easy enough to find:  https://www.economist.com/britain/2024/03/27/british-boomers-are-losing-out-for-the-first-time

1 hour ago, Rocky Sullivan said:

How about a tax on immigrants entering the UK.

or a ban combined with a comprehensive deportation policy 

6 hours ago, Gsxrnz said:

I wonder where Rachel gets her tax ideas from? 

 

That's funny.  Nice!  Applies to politicians world-wide I'd say! 

2 hours ago, Gaccha said:

 

They literally all came your way. And then you gamed the system in your favour. Let's run through your easy life:

 

1. House prices were peanuts as a ratio of your salary: 

 

 

2. You then enjoyed high inflation which wiped out your house debt: 

 

 

3. And then (!) you voted yourselves low taxes by wasting oil revenue on tax cuts instead of creating a long-term wealth fund, like the enormous Norwegian wealth fund:

 

 

4. And this ignores you receiving final-salary pensions, something unknown in the private sector today.

 

Whinge, whinge, whinge, there is only one secret: get a job, be the best and keep it...