Prosperous tech magnate joins the departure of non-domiciled individuals
British Fintech Tycoon Departs for Tax Haven Monaco Amid Crackdown on Non-Dom Residents
Guillaume Pousaz, the founder of one of Britain's top fintech companies, Checkout.com, has relocated to Monaco, marking the latest wealthy foreigner to leave the UK in response to the government's crackdown on non-domiciled (non-dom) residents.
According to Companies House filings, Pousaz, estimated to be worth around £6 billion, changed his country of residence in April to avoid changes to the non-dom regime implemented by Chancellor Rachel Reeves.
This departure adds to the growing number of ultra-high net worth individuals (UHNWIs) abandoning Britain for more tax-friendly jurisdictions. Notably, last month, Goldman Sachs' most senior banker outside the US, Richard Gnodde, moved to Milan, while Aston Villa co-owner Nassef Sawiris and steel magnate Lakshmi Mittal have also prepared to depart.
Pousaz, though the first major fintech entrepreneur to leave amid the tax regime, may prompt concerns of an exodus spreading within the UK's cherished fintech sector.
In her maiden Budget, Chancellor Reeves announced plans to abolish the non-dom status, a two-century-old tax regime that allowed wealthy foreigners living in the UK to pay taxes only on British-based income and assets. In addition, the Chancellor tightened rules on non-dom and former non-dom-owned foreign-held trusts, making them liable to UK taxes such as inheritance tax.
Though re-election plans promised revenue gains for the Exchequer of over £10 billion annually, numerous wealth advisors and tax lawyers argued that eliminating the non-dom regime would force wealthy investors and entrepreneurs to divert to low-tax jurisdictions like Milan, the UAE, and Monaco.
According to the Centre for Economics and Business Research (CEBR), if half of the UK's former non-doms depart, the Treasury might face a fiscal shortfall of £12.2 billion.
Pousaz's decision to relocate signifies the end of his 12-year tenure as CEO of Checkout.com from its London headquarters. Founded in 2012, the fintech company has grown into a $9.35 billion powerhouse under his leadership. However, the company has faced growing losses since the pandemic, with a 73% increase in losses reaching £306 million in 2023.
Both Pousaz's family office and Checkout.com declined to comment on the moving, nor any potential ramifications for Checkout.com's London headquarters.
- The departure of taxes penalty-averse business magnates, such as Guillaume Pousaz, from finance sectors like fintech, to tax havens like Monaco, suggests a growing concern that UK's stricter tax regulations may attract an exodus within the sector.
- As technological advancements continuously reshape the global finance landscape, it's plausible for firms like Checkout.com to maintain their growth potential by making strategic relocations to more business-friendly and financially favorable jurisdictions, like Monaco, in response to tax regime changes.
