0 likes18 views

West Ham chairman blames government tax crackdown for super-rich exodus ahead of budget

October 5, 2024

David Sullivan, chairman of West Ham United and one of Britain’s wealthiest individuals, has criticised the Government’s tightening of non-dom tax rules, blaming the changes for driving the super-rich out of the country.

Sullivan, who is the football club’s largest shareholder, has cut the asking price of his 21,000 sq ft London mansion by £10m to £65m, citing high interest rates and upcoming tax reforms as major factors.

The property, located in Marylebone, has been on the market since late 2023. Sullivan told Bloomberg: “What the Government is doing to the non-doms isn’t very nice, and a lot of rich people are leaving the country as a result of what they anticipate in the Budget. Three or four of my friends have already gone to Monaco or Dubai.”

David Sullivan has cut the asking price of his Marylebone town house to £65m Knight Frank

At 75 years old, Sullivan now faces selling the mansion, which boasts luxurious features like a 12.7 metre swimming pool, hot tub, gym, and a sky lounge, at a loss. The businessman, worth an estimated £1.1bn, spent around £75m buying and renovating the property, which has served as the backdrop for films like The King’s Speech and Amy Winehouse’s Rehab music video.

The issue centres around non-doms—UK residents who hold tax domiciles elsewhere—who currently benefit from not paying local taxes on overseas earnings for up to 15 years. The government, however, under plans announced by former chancellor Jeremy Hunt, is set to phase out non-dom status by April 2025. The reforms would limit new arrivals to a four-year grace period before full taxation on global earnings kicks in, while existing non-doms would have a two-year transition period. The crackdown has raised concerns of a significant exodus of the wealthy from the UK.

Sullivan’s frustrations reflect a wider sentiment among the UK’s super-rich, who are worried about potential capital gains and inheritance tax hikes in the upcoming Budget. Christian Angermayer, a cryptocurrency billionaire, recently relocated to Switzerland, labelling the Government’s non-dom tax crackdown as a “huge mistake”. Charlie Mullins, Britain’s richest plumber, has also listed his £12m London penthouse for sale as he prepares to flee the country.

The 21,000 sq ft townhouse on Portland Place includes a commercial kitchen Knight Frank

Rachel Reeves, the Chancellor, is reportedly considering diluting the proposed non-dom reforms amid fears that the measures may not generate the expected £2.7bn by 2028. Treasury officials are concerned that the tax changes could backfire, triggering a mass departure of wealthy individuals from the UK.

Sullivan, who built his fortune in the 1970s through the adult entertainment industry before expanding into property, football, and media, co-owns West Ham United and is joint chairman of the club. His decision to reduce the price of his mansion reflects wider struggles in London’s super-prime property market. According to Knight Frank, only 10 properties priced above £30m changed hands in the year to July, compared to 38 in the previous year.