Reform UK’s proposed change to non-dom tax rules would see £600 to £1,000 a year paid directly into the bank accounts of Britain’s lowest paid workers, Nigel Farage has claimed.
However, the party leader faced accusations on Monday that his plans for a so-called Britannia Card could cost the UK £34 billion.
Mr Farage said he was “not clever enough” to answer questions about the suggested hit to the Treasury, but dismissed criticism as “off-the-wall nonsense”.
The party’s proposal would see wealthy foreigners and returning British expats get a bespoke tax regime in exchange for a one-off payment of £250,000.
All the funds collected would be redistributed directly to Britain’s lowest-paid workers who would get an extra £600 to £1,000 a year tax free, the party claimed.
Mr Farage said: “Many talented people are leaving, and we want as a party as many entrepreneurs, as many risk-takers, as many job creators, as many people paying lots of tax, as many people investing huge sums of money – we want as many of them as possible to be in our country.”
He batted away suggestions that it was a “profoundly left-wing concept” as he was asked whether the announcement was a bid to win votes from low-income workers.
Under the “Britannia Card”, wealthy individuals would be offered a 10-year renewable residence permit for the fee. It would mark a return to the controversial “non-dom” arrangement whereby overseas income can be shielded from UK tax.
They would also avoid inheritance tax, with the one-off payment then being distributed to Britain’s bottom 10% of earners.
Reform’s former chairman Zia Yusuf said: “Obviously basic economic theory says that that £600 to £1000 per year in a tax free dividend paid to those workers is almost certainly going to go straight out into the economy, into local high streets, into cafes, into local resorts, into local restaurants, exactly where it should be.
“So we're very excited about this. We've already had fantastic feedback from people who are already here and about to leave and are making arrangements to leave.”
But Dan Neidle, founder of Tax Policy Associates, claimed the policy would cost the UK £34 billion, warning that some highly skilled and highly paid professionals would not be able to afford the £250,000.
The Office for Budget Responsibility has assessed that recent Labour and Conservative reforms to the non-dom status raise a net £33.9 billion from 2026/27 to 2029/30.
This sum is generated from a small number of very wealthy people who Mr Neidle said would opt to buy a Britannia Card and pay no tax, meaning the revenue would be lost.
Because the £250,000 one-off payment would be redistributed, none of the money raised would reduce the impact on the public finances, he said.
The Labour Government abolished the non-dom tax status in April, which is where UK residents whose permanent home or domicile for tax purposes is outside Britain.
Mr Farage was asked about the analysis on Monday and was also pressed on whether he had an overall costing for the policy.
“Oh dear, oh dear, oh dear. I’m not clever enough to answer any of that,” he said.
“That just sounds completely off-the-wall nonsense. I’m really sorry, but I think what we’ve got here is a very attractive offer.
“People are fleeing this country in droves. Our economy is in trouble. There are fears of wealth taxes coming in. All the mood music is bad.”
The party leader said he believed “tens of thousands of people” would come to the UK “on this ticket” if Reform is successful at the next election.
Ellie Reeves, chair of the Labour Party, said: “Nigel Farage’s new policy is quite simply a bonanza for billionaires.
“Not only is this a golden giveaway to the rich, but experts warn this will leave a massive black hole in the country’s finances that working people will be left to pick up the bill for.
“Reform UK is not serious or credible. Every family in the country would foot the bill for their dangerous and unfunded Liz Truss style policies which would devastate Britain’s economy.”
