David Sullivan, chairman of West Ham United and one of Britain’s richest individuals, has criticized the government’s tightening of non-domestic tax rules, blaming the changes for driving the super-rich out of the country .
Sullivan, the football club’s largest shareholder, has cut the asking price of his 21,000 sq ft London mansion by £10 million to £65 million, citing high interest rates and coming tax reforms as major factors.
The property, located in Marylebone, has been for sale since the end of 2023. Sullivan told Bloomberg: “What the government is doing to the non-doms is not very nice, and many rich people are leaving the country because of what they expect in the budget. Three or four of my friends have already gone to Monaco or Dubai.”
At 75, Sullivan now faces selling the mansion, which boasts luxury amenities such as a 40-foot pool, hot tub, gym and sky lounge, at a loss. The businessman, who is worth an estimated £1.1 billion, has spent around £75 million buying and renovating the property, which has served as the setting for films such as The King’s Speech and Amy Winehouse’s Rehab music video.
The problem centers on non-doms – UK residents with a tax address elsewhere – who currently benefit from not paying local taxes on foreign income for 15 years. However, the government plans to phase out non-dom status by April 2025, under plans announced by former Chancellor Jeremy Hunt. The reforms would limit new entrants to a four-year grace period before the full tax on global profits comes into effect, while existing non-doms would be subject to a two-year transition period. The crackdown has raised concerns about a significant exodus of the wealthy from Britain.
Sullivan’s frustrations reflect a broader sentiment among Britain’s super-rich, who are worried about potential capital gains and inheritance tax increases in the coming budget. Christian Angermayer, a cryptocurrency billionaire, recently moved to Switzerland and has labeled the government’s non-dominant tax stance as a “big mistake.” Charlie Mullins, Britain’s richest plumber, has also put his £12 million London penthouse up for sale as he prepares to flee the country.
Rachel Reeves, the Chancellor, is reportedly considering watering down proposed non-domestic reforms amid fears the measures will not raise the expected £2.7 billion by 2028. Treasury Department officials are concerned that the tax changes could backfire, leading to a mass departure of wealthy individuals. from Great Britain.
Sullivan, who built his fortune through the adult entertainment industry in the 1970s before expanding into real estate, football and media, is co-owner of West Ham United and is co-chairman of the club. His decision to slash the price of his mansion reflects the wider struggle in London’s super-prime property market. According to Knight Frank, only 10 properties priced above £30 million changed hands during the year to July, compared to 38 in the previous year.
Jamie Young
Jamie is a seasoned business journalist and Senior Reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in business administration and regularly attends industry conferences and workshops to stay at the forefront of emerging trends. When Jamie isn’t reporting on the latest business developments, he is passionate about mentoring emerging journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.