The UK government’s plan to launch a new investment visa for wealthy foreigners willing to fund strategic sectors might sound like an open invitation to global capital — but it’s dangerously out of step with reality, according to some senior wealth managers in London.
On the one hand, ministers are asking for billions in backing for AI and clean energy. On the other, they’re pulling the rug from under the very investors who’ve been quietly building Britain’s economy for decades. The UK government is currently weighing a visa scheme that would grant residency to individuals who commit substantial capital to high-growth sectors such as life sciences, artificial intelligence, and renewable energy.
But this fresh pitch to the ‘global elite’ comes just weeks after the Treasury confirmed the abolition of the non-domiciled tax regime from April 2025 — a move that threatens to trigger a wave of wealth outflows from the UK.
“The contradiction couldn’t be clearer,” said Nigel Green, who leads deVere, a global wealth management group. “The proposed visa targets a small, tightly defined subset of foreign investors — while the tax change risks alienating an entire class of globally mobile wealth-creators already living, spending, and investing in Britain. Britain is throwing out the welcome mat for new capital, while discouraging the people who’ve already made the UK their home.”
Under the new tax rules, foreign nationals who have lived in the UK for more than four years will be taxed on their worldwide income — scrapping the long-established incentive that allowed them to keep offshore income outside the UK tax net. While the Treasury estimates this could raise £2.7bn annually, experts across the legal and wealth sectors warn the policy will ultimately cost more in lost growth, jobs and consumption.
Non-domiciled residents invested in early stage businesses
Some studies report that non-doms contributed around £6 billion in tax annually before the changes — and played a disproportionate role in funding early-stage businesses, the arts, and charitable foundations. Many are now making plans to relocate to jurisdictions with clearer, more consistent tax policies.
The UK government scrapped the Tier 1 Investor visa in 2022 under pressure over security concerns. But rather than reforming it or creating a coherent replacement, it is now pinning hopes on a narrowly scoped offering tied to ‘strategically important’ sectors. The problem? Most international investors aren’t looking for sector-specific gimmicks — they want long-term legal and fiscal clarity.
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“Capital is fluid,” said Green. “The wealthy have options. They’re looking for countries that reward residency and investment with consistency, not bait-and-switch policies. The UK’s new visa idea, without a broader policy rethink, won’t reverse the damage already done.”
London is still home to world-class financial infrastructure, elite universities, and a powerful rule-of-law tradition — but these advantages are presently being undermined by political volatility and short-term policymaking.
What’s gone wrong with the UK tax regime for non-doms?
The removal of the remittance basis of taxation, which previously allowed up to 15 years of income and capital gains tax exemptions on foreign income and gains, has been flagged up as a particular issue by tax experts. The new rules limit this to just four years now.
The introduction of IHT on the global estates of non-doms after 10 years of UK residency, retroactively impacting those approaching or exceeding the threshold is another problem. Even after leaving the UK, a 10-year tax ‘tail’ ensures non-doms are still subject to significant tax obligations.
The erosion of tax planning opportunities through stricter trust rules, coupled with a global trend of tax-free or tax-efficient jurisdictions such as the UAE, Italy, Switzerland, and Portugal, are outshining the UK, making it less attractive as a place to live for high net worth investors.
Feedback from brokers and wealth managers which The Armchair Trader has spoken with since the start of the year show that many non-domiciled HNWs are leaving Britain to relocate to other jurisdictions. The United Arab Emirates seems to be one of the most favoured destinations for non-dom investors packing their bags.
The UK’s policies now disincentivize foreign nationals from staying longer than the initial four years allowed under the FIG regime. The UK’s current framework unintentionally makes it a short-term haven for those looking to realise foreign gains tax-free, rather than fostering long-term economic contributions.
