Reform UK’s proposal to attract wealthy individuals to the UK with a significant entry fee and special tax breaks has ignited a fierce political row, with Labour branding the plan a “billionaires’ bonanza.” Leader Nigel Farage is championing the policy, dubbed the “Britannia Card,” as a way to inject wealth into the country while simultaneously funding a direct financial boost for low-paid British workers.
At the heart of Reform UK’s plan is a controversial offer: wealthy newcomers would pay a one-off “landing fee” of £250,000. In exchange, they would receive a special tax status for 10 years, effectively exempting them from paying UK tax on their international earnings and inheritance. While earnings generated within the UK would still be taxed, the exemption on overseas wealth marks a significant departure from recent moves to tighten the tax rules for non-UK domiciled residents.
Funding the ‘Britannia Workers’ Dividend’
Reform UK estimates this scheme could attract thousands of wealthy individuals annually. Their projections suggest that with an uptake of around 6,000 applicants per year, the £250,000 fees would generate £1.5 billion. This revenue, Reform promises, would be channelled entirely into a “Britannia workers’ dividend” – a tax-free annual payout delivered directly by HMRC to low-paid full-time workers.
Depending on uptake (6,000 vs. a higher 10,000 scenario), Reform projects this dividend could range from £600 to £1,000 per worker. The party claims approximately 2.5 million individuals in the bottom 10% of the income distribution would qualify, with the benefit disproportionately helping workers in regions like Wales, Scotland, and the north-east of England.
Nigel Farage defends the policy, arguing it’s necessary to reverse the trend of wealthy individuals leaving the UK. He stated the aim is to “actively encourage the return of wealth and talent,” but only if they “deliver immediate, visible benefits to our workers.” Farage insists this is not about “stealing from the rich” but encouraging them to invest and create jobs, adding that he believes Labour may eventually adopt a similar approach.
Critics Warn of ‘Massive Black Hole’
Labour has launched a blistering attack on the proposal. Labour chair Ellie Reeves slammed it as “quite simply a bonanza for billionaires” and a “golden giveaway to the rich.” Critics argue that despite the £250,000 fee, the overall tax revenue collected from these wealthy individuals would be significantly lower than if they were taxed on their global income under standard rules, as Labour’s proposed abolition of non-dom status would enforce.
Tax experts share these concerns. Dan Neidle of Tax Policy Associates warned the scheme could cost the UK economy significantly, potentially amounting to £34bn to £35bn over just five years in lost revenue. Neidle argued the policy is unlikely to see high uptake from the genuinely wealthy it targets and could primarily serve as a substantial tax break for existing wealthy UK residents rather than attracting new money.
Labour contends that such a policy would leave a “massive black hole” in the public finances, with working families potentially facing the burden of finding the lost revenue.
Reinstating Non-Dom Privileges?
Commentators note that Reform UK’s “Britannia Card” effectively proposes a simplified, paid-for version of the abolished non-domicile tax status. This contrasts sharply with Labour’s commitment to scrapping the old non-dom rules and the Conservative government’s recent shift towards a residence-based taxation system for new arrivals.
Reform positions the Britannia Card as a unique approach to delivering for the British working class, aiming to dominate political discourse on economic terms, particularly in areas traditionally considered “red wall” seats.
However, the party has yet to publish detailed specifics on key aspects of the policy, including a clear definition of who qualifies as a “high-net-worth newcomer,” how the scheme would be enforced by HMRC, or a legislative draft.
As Reform UK gains traction in national polls, the “Britannia Card” policy highlights the stark differences in how major parties propose to manage the UK’s finances and attract global talent, setting the stage for continued debate over its potential economic and social impact.
