Ferrari has reduced the number of cars it sells in the UK after wealthy residents are leaving the country following the scrapping of the non-dom tax status.
In a bid to prevent a decline in the residual value of the luxury Italian cars, Ferrari said it began limiting the number of vehicles it exported to the UK six months ago.
Benedetto Vigna, the chief executive of the carmaker, said the company had seen a “stabilisation” in sales following the reduction of vehicles allocated to the UK.
“Some people are getting out of that country for tax reasons,” he told the Financial Times, but added that “there are many different factors” for a decline in residual values.
“Maybe when you sell to the UK, that car cannot be sold somewhere else [because of its right-hand wheel],” he said.
Non-domiciled means UK residents whose permanent home, or their “domicile” for tax purposes, is outside the UK. This meant that so-called non-doms paid tax in the UK only on income generated in the UK, meaning any income earned overseas was exempt from British taxation.
However, Labour abolished the non-dom tax status in April following backlash that wealthy residents could enjoy the benefits of living in the UK without paying as much tax.
The UK has experienced its most significant drop in billionaires ever recorded, according to the Sunday Times Rich List 2025. This year’s list marks the steepest decline in the Rich List’s 37-year history- from 165 billionaires to 156- coinciding with Labour’s crackdown on the non-dom tax status.
But chancellor Rachel Reeves has denied allegations that the UK is losing wealthy residents due to the tax change.
She told The Guardian earlier this week that such talk was just “scaremongering”, adding: “This is a brilliant country and people want to live here.”
However, she also underscored that the wealthy would be taxed more heavily in next month’s Budget.
Last week, Ferrari raised its 2025 financial forecast despite facing 15 per cent tariffs on foreign car imports to the US, as it unveiled the new powertrain and chassis of its first fully electric production vehicle.
Under the carmaker’s new five-year plan, 40 per cent of the product lineup will be the brand’s core internal combustion engines, 40 per cent will be hybrid and 20 per cent will be electric by 2030, with an average of four new launches a year in the period.
The new business plan calls for more models with lower volumes of each.
