Icelandic billionaire Björgólfur Thor leaves UK, calls for tax ceiling

Wealthy entrepreneurs are fleeing the United Kingdom, with Icelandic billionaire Björgólfur Thor Björgólfsson among those who have relocated. Björgólfsson, who became Iceland's first billionaire, moved from Britain to Italy last year and now pays taxes there. His investment firm, Novator, has also shifted its headquarters from London to Zurich, Switzerland.

This exodus follows concerns that wealthy individuals and business leaders are leaving the UK because of changes to its tax system. The British government has abolished the non-domicile tax regime, which allowed certain UK residents to avoid paying full tax on foreign income and assets. Inheritance tax rules have also been tightened.

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This is a flight of people, it is not an invention.

Björgólfsson described the departure of wealthy entrepreneurs from the UK as a "flight of people," not an exaggeration. He stated that the abolition of the non-dom system has prompted investors to seek opportunities elsewhere, noting the rapid pace of these changes and their emerging consequences.

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It is incredible how fast this has happened. The consequences are starting to appear elsewhere.

Björgólfsson has relocated to Milan and joins a growing number of business figures who have left the UK since the Labour Party took power. He mentioned attending a meeting with advisors to Prime Minister Keir Starmer alongside other wealthy individuals. Björgólfsson expressed concern that the government might have made a mistake and later realized it. He urged British authorities to adopt a fixed tax ceiling, similar to Italy's system, believing it would make the UK more attractive to entrepreneurs and business leaders.

Novator's move from London to Zurich reportedly resulted in the loss of about 20 jobs, according to The Telegraph. Björgólfsson rebuilt his wealth after the 2008-2009 financial crisis, during which he lost nearly all his assets. Before the banking collapse, he was the largest shareholder of Landsbankinn, which failed in the fall of 2008. Björgólfsson faced significant criticism for his role leading up to the crisis and later apologized for his actions at the time.

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What worries me is that the government seems to have made a mistake and then realized that it made a mistake.