CVC chief says non‑dom clampdown will not deter firm as Reeves weighs tax rises

Rob Lucas, chief executive of buyout firm CVC Capital Partners, said the firm was not concerned by recent UK changes to non‑dom tax rules, telling reporters on Thursday that employees who disagreed with the policy were free to leave.

Lucas said CVC remained confident in the UK's ability to attract people and investment, and described staff mobility as a mitigating factor against any domestic regulatory shift. "In terms of the non‑dom situation, people these days are very, very mobile and whether that’s young people, whether that’s people more generally but particularly within the financial services ... people move all the time around the globe," he said.

The comments come as Chancellor Rachel Reeves prepares a Budget that ministers have signalled may include tax increases to meet fiscal targets. The clampdown on non‑dom status — a regime that applied to UK residents whose permanent domicile is abroad — was introduced under the Conservative government and subsequently widened by the Labour administration. That sequence of reforms has prompted concern among some business leaders about the prospect of wealthy taxpayers and highly skilled workers relocating.

An analysis by the Centre for Economics and Business Research (Cebr) cited in media reports warned that a significant departure of non‑doms could subtract billions of pounds from UK tax receipts, complicating the Chancellor's fiscal planning ahead of the Budget. The Cebr study said an exodus of individuals with non‑dom status would reduce the taxable base and could offset some revenue gains from the policy changes.

CVC, which runs buyout and investment funds with staff and operations across multiple countries, is one of several financial services firms that have emphasised workforce mobility in response to the policy shift. Lucas stressed that global firms regularly reassign staff between jurisdictions and that decisions about where to live and work are often made individually.

Government ministers and tax authorities have framed the non‑dom rule changes as part of efforts to modernise the tax system and ensure higher earners make proportionate contributions. Opponents argue the changes risk reducing competitiveness by discouraging inward investment and the settlement of international executives and entrepreneurs in the UK.

Market analysts and industry groups are watching whether any outflow of wealthy residents or senior finance professionals will prompt firms to relocate functions or talent. So far, public statements from major private equity and asset management firms have tended to emphasise the continued attractiveness of the UK as a base for investment, while acknowledging the flexibility of a mobile workforce.

As Chancellor Reeves readies fiscal measures for the forthcoming Budget, ministers will need to weigh the potential revenue gains from tighter non‑dom rules against the possibility of a reduced tax base if affected residents choose to leave. The coming weeks are likely to produce further analysis and industry responses as businesses and independent economists assess the practical impact of the reforms on revenue, investment and the labour market.