Tax Expert Says Nigel Farage's Latest Policy Would Leave A £34 Billion Black Hole In The Nation's Books

Nigel Farage, leader of the Reform UK party speaks at an event in London, Tuesday, May 27, 2025. (AP Photo/Alastair Grant)Nigel Farage’s plan to charge the super-rich £250,000 each to live in the UK in exchange for a major tax break would cost the government £34 billion, an expert has warned.The Reform UK leader unveiled plans to give a “Britannia Card” to wealthy foreigners who move to Britain in exchange for the one-off fee.In return, they would enjoy so-called “non-dom” status, which allows them to avoid paying tax in the UK on their overseas earnings – a perk scrapped by Labour.The money raised from the new policy would be given directly to around 2.5 million workers on low incomes, Farage announced on Monday.He said: “Britain must be a place where success is celebrated, not punished with excessive taxes, crippling energy costs, or punitive inheritance levies.“We will actively encourage the return of wealth and talent to the United Kingdom, on the clear condition that those who come here deliver immediate, visible benefits to our workers.”But Dan Neidle, founder of Tax Policy Associates, said the policy would leave a massive black hole in the nation’s books.He said the Office for Budget Responsibility estimated that scrapping non-dom status would raise £33.9bn for the Treasury between 2026/27 and 2029/30.“The £33.9bn reflects tax raised from a small number of very wealthy people who would opt to buy a Britannia card and so pay no tax - it’s therefore revenue immediately lost by Reform UK’s proposal,” Neidle posted on X.“It’s worse than that – Reform UK are providing a much more generous regime for the very wealthy than was in place before March 2024. There would be additional costs from deterring ‘normal’ expats from coming here.“We therefore believe its fair to say that Reform UK’s proposal will cost around £34bn if it was enacted before 2026/27. That sum would therefore likely have to be funded by some combination of spending cuts and tax rises.”Labour chair Ellie Reeves said: “Nigel Farage’s new policy is quite simply a bonanza for billionaires.“Not only is this a golden giveaway to the rich, but experts warn this will leave a massive black hole in the country’s finances that working people will be left to pick up the bill for.“Reform UK is not serious or credible. Every family in the country would foot the bill for their dangerous and unfunded Liz Truss-style policies which would devastate Britain’s economy.”A Reform UK source told HuffPost UK that Neidle’s analysis was “simply not credible”.Related...Nigel Farage Accused Of 'Billionaires' Giveaway' Over New Tax Policy'He Evidently Can't Add Up': Labour MP Mocks Nigel Farage In Brutal PMQs SlapdownRachel Reeves Monsters Nigel Farage For Backing Liz Truss's Disastrous Mini-Budget

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