David Sullivan, the chairman of West Ham United and one of Britain’s richest individuals, has criticized the government’s tightening of tax rules for non-residents, blaming the changes for driving the wealthy out of the country.
Sullivan, who is the football club’s largest shareholder, has cut the asking price for his 21,000 sq ft London mansion by £10 million to £65 million, citing rising interest rates and upcoming tax reforms as key factors.
The property is located in Marylebone and has been for sale since late 2023. Sullivan told Bloomberg“What the government is doing to non-residents is not nice, and a lot of rich people are leaving the country as a result of what they expect in the budget. Three or four of my friends have already gone to Monaco or Dubai.”
Sullivan, 75, faces selling the mansion, which has luxury features such as a 12.7-metre swimming pool, hot tub, gym and sky lounge, at a loss. The businessman, whose fortune is estimated at £1.1 billion, spent around £75 million buying and renovating the property, which served as the backdrop for films such as King’s speech and the music video for “Rehab” by Amy Winehouse.
The case centers on non-residents – UK residents who are tax resident elsewhere – who currently benefit from not paying local tax on their overseas earnings for up to 15 years. However, under plans announced by former Chancellor Jeremy Hunt, the government is set to phase out non-resident status by April 2025. The reforms would limit new entrants to a four-year grace period before full taxation of global profits begins, While current non-residents will have a two-year transition period. The crackdown has raised fears of a large exodus of wealthy people from the United Kingdom.
Sullivan’s frustrations reflect wider sentiments among the UK’s wealthy, who are concerned about potential capital gains and inheritance tax increases in the next Budget. Cryptocurrency billionaire Christian Angermayer recently moved to Switzerland, calling the government’s tax crackdown on non-residents a “huge mistake.” Charlie Mullins, Britain’s richest plumber, has also put a £12million London penthouse up for sale as he prepares to flee the country.
Rachel Reeves, the Chancellor of the Exchequer, is said to be considering easing the proposed reforms on non-residents amid concerns that the measures may not generate the £2.7bn expected by 2028. Treasury officials are concerned that the tax changes could backfire, leading to… Mass departure of wealthy individuals from the UK.
Sullivan, who built his fortune in the 1970s through the adult entertainment industry before expanding into real estate, football and media, co-owns West Ham United and is joint chairman of the club. His decision to reduce the price of his mansion reflects wider struggles in London’s luxury property market. According to Knight Frank, only 10 properties priced above £30m changed hands in the year to July, compared to 38 the previous year.
Jimmy Young
Jamie is an experienced business journalist and senior reporter at Business Matters, with over a decade of experience reporting on UK SME business. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When Jamie is not reporting on the latest business developments, he is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.
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