Davey: Only right tax exiles start paying taxes to fund the Armed Forces

EMBARGO: Immediate Release

Liberal Democrat Leader, Ed Davey has today challenged Prime Minister Keir Starmer, in the Chamber and called for tax exiles to start paying taxes to fund the Armed Forces, as they protect British citizens around the world.

This comes as over the weekend, the UK launched an operation to support at least 200,000 British nationals in the Middle East, as Iran continues to launch strikes in the region in response to an ongoing attack by Israel and the U.S.

According to 2024 estimates, approximately 240,000 British nationals live in Dubai alone. Many British nationals migrate to the UAE as Brits residing there are not required to pay personal income tax, capital gains tax, or inheritance tax. Comparatively, U.S. Citizens residing abroad are subject to tax on worldwide income, which is generally the same as if they were residing in the U.S.

Leader of the Liberal Democrats, Ed Davey, said:

“Since we rightly expect our Armed Forces to protect British citizens around the world in a crisis, it’s only right that tax exiles start paying taxes to fund the Armed Forces like the rest of us.

“The likes of Isabel Oakeshott and washed-up old footballers mock ordinary people who stay in the UK and pay our taxes here, but then expect us to pay the bill for their protection.

“We shouldn’t let them get away with it anymore.

“Tax expats should be subject to UK tax from now on, just like such Americans have to pay US taxes.”

ENDS

Notes to Editors:

Estimate on the number of British nationals living in Dubai detailed here.

U.S. Citizens abroad tax rules detailed here.