Chancellor Rachel Reeves is considering a new 20% tax on the assets of individuals who decide to leave the United Kingdom, in a move aimed at preventing capital flight and aligning Britain with similar policies in other major economies.
‘Settling-up charge’ under review
According to Treasury insiders, the proposal—dubbed a “settling-up charge”—would apply to wealthy individuals moving their tax residence abroad. The measure is intended to ensure that those who have benefited from the UK’s public services and infrastructure contribute fairly before relocating their assets overseas. Officials estimate the levy could raise up to £2 billion in additional annual revenue.
International precedents
The proposed tax would bring the UK into line with most G7 countries, including the United States, Canada and Germany, which already impose exit or expatriation taxes on departing citizens or long-term residents. Advocates of the policy argue that such measures discourage aggressive tax avoidance and preserve domestic investment in times of economic uncertainty.
Balancing fairness and competitiveness
Reeves, who has promised to “restore fiscal responsibility” while maintaining Britain’s attractiveness to investors, faces a delicate balancing act. Critics within the business community warn that the tax could deter high-net-worth individuals and entrepreneurs from settling in the UK in the first place. Others, including members of the Labour back benches, argue the move is both fair and necessary to rebuild public finances after years of austerity and pandemic-related spending.
Political and economic implications
The plan, still under consultation, is expected to feature in next year’s budget if approved. Analysts note that the measure could become one of the defining fiscal policies of Reeves’s tenure, symbolising a shift toward progressive taxation without resorting to sweeping income tax increases. The Treasury is reportedly studying ways to minimise loopholes and ensure enforcement through international asset-tracking cooperation.
A move toward ‘shared responsibility’
Supporters see the proposal as part of a broader moral and economic reset, reinforcing the principle that those who have prospered under Britain’s legal and financial systems should not simply walk away from their obligations. As one Treasury source put it, “If you’ve built your wealth here, it’s only right that you contribute your fair share before you go.”
Newshub Editorial in Europe – 2 November 2025
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