Nightmare for Rachel Reeves as Labour's taxes see super rich flee Britain for Monaco

THE Chancellor's gamble on taxing Britain's super rich appears to have backfired with the wealthy fleeing for Monaco - sending rents soaring there by as much as 37%. Wealthy Britons, as well as foreign nationals living in London, are heading to the Mediterranean tax haven citing Rachel Reeves's new levies on millionaires and billionaires as a major reason.

As of April, the Chancellor abolished the so-called "non dom" tax system which had meant high-income earners who had their permanent home outside the UK did not have to pay tax on foreign income. And further changes could see super-wealthy individuals effectively taxed at a rate of 67% across their foreign income, according to experts.

More than 10,000 millionaires, who contribute a disproportionate amount of tax and business activity to the UK,left the country last year. The entrepreneur exodus has also been driven by crime gripping mayor Sir Sadiq Khan's London, as millionaire movers say "safety" is the other main reason for upping sticks.

Paolo Petrini, pictured inset above, from Petrini Exclusive Real Estate Monaco, one of the largest agents in the principality, told the Sunday Express: "We're seeing a growing number of British clients, coming not only from London but also from major cities such as Manchester, Birmingham and Edinburgh. Some mention recent changes to the UK tax landscape, for example the end of a regime that previously allowed certain foreign income not to be taxed.

"Safety is just as important - many of our clients say they value the peace of mind they find in Monaco, a calm they had lost at home."

Mr Petrini said on average his firm had seen rent increases of "between eight and 15%" affecting some of the principality's roughly 17,000 residences open to international buyers.

He added "in certain ultra-prime segments" the increases have been even more striking with one apartment seeing a 37% rise in rent.

Space is always at a premium in Monaco, which has a population of 38,000 living in an area only around 150 acres bigger than Hyde Park. The super-rich playground is ruled by Prince Albert, 67, son of Hollywood legend Grace Kelly. He has styled Monaco into one of the most attractive places for the wealthy to live.

Entry requirements are strict and famous residents include F1 champions Sir Lewis Hamilton and Max Verstappen.

Florian Valeri, of the Barnes Valeri Agency, told Express.co.uk rents had risen between 10 to 20% in the last two years. And he added: "I have heard from British people moving here who were robbed in the UK.

"They were already thinking of moving, but their decisions were accelerated by this insecurity that you are facing."

He added: "We are observing more requests for turnkey (fully furnished) apartments, more and more people don't want to furnish the apartment which could take up to two or three months. Those properties could be rented at 20% above market value.

"We are also seeing a rise in hotel residency, and this can be a good door to arrive, some of the wealthy people do that to see if they want to settle here long-term and to have a better understanding of the country and research their next apartment."

A Treasury spokesperson said: "The UK remains highly attractive. Our main capital gains tax rate is lower than any other G7 European country and our new residence-based regime is simpler and more attractive than the previous one, while it also addresses tax system unfairness."

A Met spokesperson said since April thefts in London's West End had reduced by 20% and violence against a person was down 8%.

They added: "Our intelligence and data-led approach to tackle the crimes that matter most to Londoners - such as shoplifting, robbery and anti-social behaviour - is already working.

"We're arresting more than 1,000 more criminals each month, neighbourhood crime is down by 19 per cent and we've solved 163% more shoplifting cases this year.

"Up to 80 more officers will join the dedicated West End team to bear down on crimes which Londoners care about the most - and we'll continue to work with partners to focus resources and pursure prolific offenders."