The UK government thought it could fix its budget mess by squeezing the wealthy. 

Spoiler alert: it's blowing up in their faces.

Capital gains tax receipts crashed by £1.4 billion, a 10% decline over the past year.

This apparently came as a shock to UK politicians, after they had just raised capital gains taxes two months ago. 

Ever heard of the Laffer Curve? 

It’s simple: tax too much, and you get less revenue because people stop earning or leave.

That’s exactly what’s happening in the United Kingdom.

Instead of raking in cash, the government’s chasing away the golden geese. 

They won’t admit their tax hikes failed. 

Rather than fix the mess, they’ll likely do something even dumber...like raise taxes again.

This £1.4 billion hole isn’t just a rich person’s problem; it’s a warning to those in the UK that everyone’s going to feel the pain.

High-net-worth individuals in the UK are packing up and taking their wealth elsewhere, and who can blame them?

Between skyrocketing taxes and increasing crime rates, wealthy Brits are finding little reason to stay. 

And for expats who once used the UK’s non-dom regime to lower their tax bill? That is no longer an option after the program was scrapped earlier this year.

Previously, this special tax regime attracted high-net-worth individuals from all over the world, offering benefits like tax-free foreign-sourced income, as long as it wasn’t remitted to the UK. 

This system allowed wealthy foreigners to live in Britain without paying tax on overseas earnings.

However, now that former non-doms face UK taxes on their global income, guess what? 

They aren’t sticking around to pay for it.

Instead, they are seeking higher ground to protect their hard-earned wealth.

The government thought it’d rake in billions by closing this “loophole,” but all it did was predictably chase away the wealth creators.

Wealthy individuals still in the UK observing all this have to be saying to themselves…

"Is this really worth it?"

Those who have seen the writing on the wall in their own country are actively relocating their wealth and physical presence to more welcoming environments, such as here in Panama, where expats pay a whopping 0% tax on foreign–sourced income. 

If this sounds better than being fleeced for the rest of your hard-earned wealth, take a few minutes to read this important letter. 

Speak soon,

Mikkel

PS. You know what's one thing I never enjoyed about the UK? The weather. You know where it is nicer? Brazil! So if you want more sunlight and less rain, and bleakness, come join us in Brazil’s Northeast region this August for an Expat Exploration and Investment Tour, where you'll have the opportunity to explore the region and discover the opportunities available in the thriving Northeastern region. Secure your spot today.

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