Fredriksen to leave London following new UK tax rules.
John Fredriksen, the billionaire shipping magnate and largest shareholder in Mowi, has announced plans to leave London following the UK government’s decision to impose stricter tax rules on foreign residents. The move signals a notable shift for one of the world’s most prominent business figures and underscores growing tensions between high-net-worth individuals and tightening tax regimes.
According to a report by Finansavisen, Fredriksen’s decision comes in response to new UK regulations set to take effect in April 2025. These rules will mean all long-term residents will be subject to inheritance tax (IHT) on their worldwide assets, including those held in trust.
The clampdown formed part of wider measures aimed at the upper echelons, with private equity bosses, private schools, second homes and private jets all faced with new levies.
Fredriksen, who became a Cypriot citizen in 2006, has long maintained his residence at The Old Rectory in Chelsea, a property he acquired in 2001. However, the impending tax changes have reportedly prompted him to shutter the headquarters of his private management company, Seatankers, as part of his planned exit.
Fredriksen’s departure is likely to fuel debate over the UK’s attractiveness to wealthy international investors, particularly in the context of its post-Brexit economic strategy. Critics of the tax changes argue that the policy risks driving away high-net-worth individuals and undermining London’s status as a global financial hub.
While the UK government has defended the new tax rules as part of a broader effort to ensure fairness and bolster revenue collection, Fredriksen’s decision highlights potential unintended consequences. Industry analysts warn that other prominent figures may follow suit, further eroding the UK’s ability to attract and retain international capital.
The UK Treasury has not commented on Fredriksen’s announcement but has reiterated its commitment to creating a competitive yet equitable tax system.
Fredriksen’s move serves as a reminder of the delicate balance governments must strike between implementing progressive tax policies and retaining their appeal to global investors. As London braces for the impact of these changes, his departure may be a harbinger of further shifts among the world’s financial elite.
