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A senior Goldman Sachs banker is leaving the UK after the government abolished the favourable tax rules for non-domiciled residents.
Richard Gnodde, vice-chair of the investment bank, is moving to Milan, according to people familiar with the situation.
South Africa-born Gnodde joined Goldman Sachs in London in 1987. He rose to become chief executive of Goldman Sachs International, the company’s most senior non-US role, which he relinquished earlier this year to become vice-chair at the bank.
Gnodde’s exit from the UK highlights the fallout from the change of rules.
Wealthy individuals, such as steel billionaire Lakshmi Mittal and industrialist Nassef Sawiris, have either left the country or are planning to because of the abolition of rules that allowed UK residents who declared their permanent home as overseas to avoid paying UK tax on foreign income and gains.
Goldman said: “Given his new role, Richard will be primarily focused on growth opportunities for the firm across Europe. He will continue to spend time with our team in the London office.”
The news was first reported by City AM.
In her October Budget, chancellor Rachel Reeves confirmed the abolition of the non-dom system as of April 6. It had been proposed by her predecessor Jeremy Hunt.
Destinations such as Milan and Dubai have proved attractive for former non-doms. Italy offers a flat-tax yearly charge of €200,000 on overseas income for new residents.
Gnodde has been a philanthropic supporter of UK organisations such as the Royal Botanic Gardens, Cambridge university and Alzheimer’s Research UK. Non-dom philanthropists had warned that the abolition of the system would lead to donors leaving the UK.
