London: All set to change in the aftermath of the election Iakov Kalinin
Clients have been delaying decisions to relocate to the UK capital since March, according to the head of immigration at Mishcon de Reya, Kamal Rahman. They are concentrating hard on what today's general election will tell them about the future political direction. A government which includes the main opposition party, Labour, looks likely to do away with some of the attractions currently offerered to the wealthy - such as 'non-dom' status. Non-doms are UK residents who have wealth both in the UK and abroad and who are allowed to shield some of their foreign earnings from UK taxes.
Ms Rahman said: 'A lot of my clients are saying: ‘Why do they not want rich people here?’. They find it incomprehensible.' Labour - seen as the more likely main component of a coalition government born of today's election - has also proposed a 'mansion tax' on homes worth over £2m. However, upmarket property specialists Savills believe that other cities - such as New York and Hong Kong - are also possibly changing direction. Yolande Barnes, director of world research, said: 'It’s something we’ve noted across all the big cities we study. A lot of them are talking about problems of inequality and how it’s panning out in the housing market.' Source: Financial Times