Farage’s proposal for a £250,000 tax cut for non-DOMS sparks strong opposition to “billionaire loophole”
UK reforms have announced a controversial new policy that will allow wealthy unofficial individuals to legally avoid paying British taxes on foreign income, income, capital gains and estates in exchange for a one-time payment of £250,000 every 10 years.
The so-called “Britannia Card” announced by reform leader Nigel Farage is selling to attract “thousands of high net worth” individuals to return to the UK by providing tax certainty and taxes on UK long-term taxes on overseas wealth.
Farage said the initiative will “attract jobs and adventurers” and, despite tax exemption, will make a significant contribution to the economy through spending, investment, stamp duty and VAT.
However, the policy has drawn strong criticism from the entire political field and leading economists, who Labour calls it “the golden ticket for foreign billionaires”, and the Institute for Finance (IFS) warns that the plan is “far from clear” in generating any net income.
Fixed fees in exchange for a comprehensive tax cut
Under the proposed plan, those who award Britannia Card will pay £250,000 every 10 years:
• Complete exemption from UK taxes on foreign income, wealth, capital gains and estate
•No UK estate tax required
•There is no further tax liability for overseas income even when residing in the UK
Rever UK claims the scheme will raise £1.5 billion to £2.5 billion a year, with all proceeds tax-free to 10% of the minimum wage for full-time British workers, which may increase by £600-1,000 a year.
However, IFS and other tax experts say this is unlikely to add up. Stuart Adam, a senior economist at IFS, warned that the Treasury would lose more taxes to those who would have paid UK taxes rather than taxes from a fixed fee of £250,000. “The fact that someone is willing to pay a quarter of averting UK taxes tells you how much they save, which is probably much more than the government receives,” he said.
Dan Neidle, a tax policy colleague, said the policy could cost £34bn in five years and cited budget liability estimates. He also warned that redistribution elements are misleading because many lowest income families are not working full-time and will be excluded.
“There is a real risk that this policy does not help the poorest, but creates unexpected gains for narrow workers while allowing oversized legality to avoid billions of dollars in taxes,” he said.
Who wins – Who will lose?
While Farage believes the move will bring capital and talent back to the UK, critics say it will undermine trust in the tax system and prevent high-skilled, wealthy foreign professionals are no longer relocating to the UK and may inflate London’s already expanded property market.
When asked about this, Farage acknowledged that increased demand for the wealthy could impact real estate prices, but insisted that it would not affect affordable housing costs.
The policy also has the potential to detach the UK from other advanced economies, many of which are moving in the opposite direction, through tightening tax avoidance rules and increasing transparency in global wealth.
The rebound of mainstream parties has been very rapid. Labor Prime Minister Rachel Reeves said the proposal amounts to a “tax cut to foreign billionaires” and ultimately needs to be paid by cutting public services or taxing taxes on working families.
A labor spokesman added: “Nigel Farage can take it seriously – but it’s the billionaire’s charter that will make the UK a super-rich tax haven while destroying funding for the NHS and schools.”
Conservative shadow minister Mel Stride joined the criticism, calling the policy a “fantasy economics.” “Only Kemi Badenoch and the conservatives believe in the financial responsibility our country needs,” he said.
The policy comes as Britain prepares to abolish the existing non-competition system, which has allowed wealthy residents to legally exempt their foreign income from British taxes by claiming to live permanently elsewhere.
Under the new labor rules, which will come into effect in 2026, all UK residents will be taxed on global income in four years. The government said this would raise £12.7 billion in five years – many believe it is crucial to funding public services.
The anti-force that reformed Britain seemed to be aimed at attracting British entrepreneurial classes and global elites, but risked alienating voters, who saw it as a super-rich tax break at the expense of a wider population.
While Farage insists that his £250,000 fixed-fee policy is a pragmatic move to bring wealth and investment back to the UK, critics argue that this amounts to a return giveaway that can expand inequality, reduce income and undermine public trust in the fairness of the tax system.
The policy may inspire a part of the business community, but as the review revolves around its economic viability and distribution impact, it could become a reputation test for reforming the UK reform as a serious fiscal alternative.
