“However, with Labour's announcement regarding protected and excluded property trusts, exposure of worldwide assets to 40 per cent IHT is a major shove out the door for the richest non-doms. As a result, this group is highly likely to leave the UK.”
Lesperance highlighted how the key to many UHNW’s departure decisions is the availability of a future jurisdiction which meets the needs of themselves and their family.
“Italy is very popular. Switzerland, as always, is very popular. I have got clients that are actually going to Lake Como on the Italian side, because it's more expensive on the Swiss side, and it's only 40 minutes from Milan.
“I have got some clients that are moving to Greece and Cyprus, but that tends to be because they have businesses there, the same as Malta. Portugal is also popular.
"I have also got some clients, doing this mad rush to Ireland, because we can do it quickly, but then they could move on to Italy later on with a proper amount of time and preparation,” he added.
Impact on UK advisers
Lesperance said advisers were falling into two categories based on their reactions to the news of the exit tax based on his experiences talking to them.
He said the first group were advisers who were worrying about the tax being implemented because they felt the domicile rules were complicated and did not have confidence advising on it and how this would affect their livelihood.
“There is another group who are saying, look, I have a relationship with my client. I know a lot about them. I know where they are in the risk return - I know how aggressive or non aggressive they want to be. I have got a very personal relationship built up over a big period of time. I am going to continue to help them and act in their best interest.
"And that may mean I may need to talk to people like David or Italian tax lawyers or Portuguese lawyers, or pull together a bigger team, whereas before, maybe I was doing it all myself. And so I found the advisers kind of fit into those two things,” according to Lesperance.
He said the bottom line was UHNW non-doms were leaving the UK and even UK doms were now considering leaving.
“As one client said when presented with his future tax obligations if Labour institutes its proposals, ‘London is nice....but it's not that nice!’ What is even more ominous for UK residents is that I am now dealing with UK doms who are also exploring their departure options.
