The pandemic has also thwarted plans of those hoping to relocate this year to a country with lower taxes. In the past, tycoons including steel magnate Lakshmi Mittal, Daily Mail owner Viscount Rothermere and Chelsea Football Club owner Roman Abramovich have made use of U.K. tax exemptions on overseas earnings in exchange for an annual charge.
Davies has helped wealthy individuals move to Britain from Spain, France and Latin America, but that part of his business is now stalling.
“They’re all stuck,” he said. “They’re all saying: ‘We’re going to wait and see.’”
When nations reopen their borders, the wealthy may face even more tax trouble from governments looking to recoup the economic costs of a virus that’s heightening global concerns over inequality.
“Taxes are only going to go one way -- up,” said Menna Bowen, a partner at law firm Gunnercooke and tax adviser to Blu Family Office. “Someone has to pay for all of this.”
This article was provided by Bloomberg News.