Nigel Farage’s proposed ‘Britannia card’ scheme, designed to attract the super-rich back to Britain, could cost the UK economy £34 billion a year, according to leading tax expert Dan Neidle of Tax Policy Associates.
Farage’s Wealth Tax Plan Sparks Controversy
The former UKIP leader and Reform UK figurehead plans to offer wealthy foreigners and former residents a flat-fee tax exemption. Under the scheme, eligible individuals would pay a one-time £250,000 fee to gain long-term relief from UK taxes, replacing the scrapped non-dom regime. Reform UK estimates the scheme could generate £2.5bn annually, promising a £1,000 dividend for low-income earners.
However, critics argue the proposal is deeply flawed and would disproportionately benefit the ultra-rich while draining public finances.
Expert Warns of Severe Economic Risks
Tax expert Dan Neidle outlined three key risks:
1. Discouraging Talent: Highly skilled professionals may avoid the UK, unable to afford the £250,000 entry fee and facing an unfavourable tax landscape compared to global competitors.
2. Low Credibility: Due to recent non-dom reforms, Neidle warns that few would trust the Britannia card’s long-term promises.
3. Massive Revenue Losses: The Office for Budget Responsibility estimates a £34bn shortfall over five years if wealthy individuals already residing in the UK claim the benefits.
“This would either require tax hikes or deep public spending cuts,” Neidle stated.
Farage and Yusuf Defend the Proposal
Despite criticism, Farage and Reform UK’s former chairman Zia Yusuf stood by the proposal. Farage argued that high taxes are driving away entrepreneurs, claiming over 10,000 wealthy individuals left the UK in the last available year.
Yusuf pointed to a Bloomberg report noting 4,000 company directors have departed since Labour took power. He added that non-doms had historically contributed nearly £9bn in additional taxes and claimed the new scheme would attract foreign investment and job creators.
“The Britannia card ensures a direct benefit to the UK’s lowest-income earners and signals we welcome global wealth—if it invests in our economy,” Yusuf said.
Labour: ‘Bonanza for Billionaires’
Labour’s Ellie Reeves MP slammed the plan, comparing it to the 2022 mini-budget under Liz Truss, which triggered economic turmoil.
“This is a golden giveaway to the rich. It will leave a black hole in public finances that ordinary working families will be forced to fill,” she said. “Reform UK’s policies are economically reckless and dangerously unserious.”
