Campaign group Foreign Investors for Britain (FIFB) is calling for the launch of an investor visa for the UK.
FIFB estimates that an investor visa would raise £225 billion over a decade through a combination of a fixed annual charge of £200,000 and a minimum investment of £2.5 million over the ten years.
The group will make the case for a new visa at its Investment and Growth summit at the House of Lords on Thursday.
Leslie MacLeod-Miller, chief executive of FIFB, said: “The closure of the Tier 1 Investor Visa in 2022 created a vacuum for productive foreign capital.
“At the same time, the non-dom tax changes did not find the right balance for the UK to be internationally competitive to retain and attract foreign investment.
“The Global Investor Visa is not merely a tool for attracting capital but a vital lifeline for securing Britain’s economic future amidst fierce global competition for investment.”
The non dom departure
Under the previous regime, non-doms could live in this country without paying UK tax on their overseas wealth. New residence-based rules were introduced in April that have a four-year time limit and mean overseas assets are subject to UK inheritance tax.
As a result, a large number of non-doms have left for countries including the UAE, Switzerland and Italy, though some have kept hold of their UK properties.
The more hostile environment faced by wealthy overseas investors, which also includes increased stamp duty for additional homes, means prime property markets have slowed this year.
Prices in prime central London fell 4% in the year to October, compared to average UK growth of 1.9%.
The government recently lost £2.5 million on a single deal thanks to the pre-Budget uncertainty, according to Stuart Bailey, head of prime central London sales at Knight Frank.
Bailey said: “We’ve lost transactions because buyers have believed some of the speculation and pulled out.
“One of those transactions had two and a half million pounds of stamp duty attached to it. You can imagine how many millions the government has lost as a consequence.”