Ferrari reduces number of cars sold to the UK after non-dom tax change
Ferrari has reduced the number of cars it sells in Britain after wealthy residents left the country following the removal of non-Dom tax status.
In order to prevent the decline in the residual value of luxury Italian cars, Ferrari announced six months ago that it had started to limit the number of vehicles it exported to the UK.
Benedetto Vigna, the carmaker’s chief executive, said the company had seen a “stabilization” in sales following the reduction of vehicles allocated to the UK.
“Some people leave that country because of taxes,” he said. Finance TimesBut he added that “there are many different factors” behind the decline in residual values.
“Maybe when you sell it to England, that car cannot be sold anywhere else. [because of its right-hand wheel]he said.
Non-domiciled means UK residents whose permanent home or “domicile” for tax purposes is outside the UK. This meant that non-UK residents only paid tax on income earned in the UK; this meant that any income earned abroad was exempt from British taxation.
But Labor scrapped non-dom tax status in April following an outcry that wealthy residents could enjoy the benefits of living in the UK without paying too much tax.
There has been the most significant decline in the number of billionaires ever recorded in the UK. Sunday Times Rich List 2025. This year’s list marks the steepest drop from 165 billionaires to 156 in the Rich List’s 37-year history, coinciding with Labour’s push for non-dom tax status.
But Chancellor Rachel Reeves has rejected claims that England is losing wealthy residents due to the tax change.
he said Guard Earlier this week he said such talk was just “fear-mongering”, adding: “This is a great country and people want to live here.”
However, he also underlined that heavier taxes will be imposed on the rich in next month’s budget.
Last week, Ferrari introduced new powertrains and chassis for its first all-electric production vehicle while raising its fiscal 2025 forecast despite facing 15 percent tariffs on foreign car imports to the United States.
According to the automaker’s new five-year plan, by 2030, 40 percent of the product line will be made up of the brand’s core internal combustion engines, 40 percent will be hybrid and 20 percent will be electric, with an average of four new launches per year during this period.
The new business plan calls for more models, each with lower volume.
