UK lawmakers urge Starmer for new £2.5 million visa to stop wealthy residents from leaving

A group of lawmakers in the UK has urged Prime Minister Keir Starmer to launch a new investor visa aimed at attracting wealthy foreigners, as high-net-worth individuals continue to leave the country following recent tax increases. Their appeal, made in a letter seen by Bloomberg, argues that such a move could help the UK recover from what they describe as an economic and political stagnation.

The peers, many with Conservative Party links, proposed a visa that would require a minimum investment of £2.5 million. They said the funds could support public services and national infrastructure. The letter was also sent to Chancellor Rachel Reeves and Home Secretary Shabana Mahmood. They wrote, “Unless the government seizes this opportunity, the UK’s future looks bleak.”

Also Read| Billionaire Lakshmi Mittal quits UK for Switzerland, Dubai ahead of proposed taxes on super-rich


Reeves is preparing to introduce further levies in her second budget this week. Earlier this year, the government ended a long-standing tax break for wealthy foreign residents. Ministers have signaled that people with greater financial capacity will bear more of the tax burden. The changes come as notable billionaires and business leaders—including Checkout.com founder Guillaume Pousaz, Revolut CEO Nik Storonsky and Egyptian billionaire Nassef Sawiris—have left the UK. Their departures follow the end of the non-dom regime, a system that for 15 years allowed wealthy foreigners to avoid taxes on overseas income.

Under Labour’s reforms, foreign assets held by non-doms are now subject to UK inheritance tax. These rules took effect in April and went beyond earlier proposals from the previous Conservative government. The administration expects the overhaul of the centuries-old regime to raise about £33 billion in additional revenue over the coming years. Several think tanks have challenged that projection, warning of possible risks to jobs and long-term economic growth.

Meanwhile, other European countries—including Italy and Greece—have introduced attractive tax regimes for wealthy newcomers. These measures are modeled partly on the UK’s former system, which included a golden-visa program discontinued in 2022. Though Starmer’s government has explored a new investor visa and recently introduced a fast-track residency route for high earners, signs of financial outflows have already emerged.

Also Read| Squeeze the super rich? Flight of 'Lakshmi' is the risk

A survey conducted by Oxford Economics for Foreign Investors for Britain showed that 115 non-doms withdrew a combined £840 million from UK assets ahead of the reforms. Business Secretary Peter Kyle also confirmed on Monday that some of the country’s wealthiest residents have relocated due to earlier tax rises.

The lawmakers’ letter said, “The UK is being significantly damaged by the loss of capital and talent flowing out of the UK due to the abolition of the non-dom regime,” adding that foreign investors are departing “taking their investments, philanthropy, spending and, importantly, job creation with them.”