The chief of Ferrari has attributed the Labour administration's assault on wealth for its choice to reduce the volume of vehicles it distributes in the º£½ÇÊÓƵ, stating that a "stabilisation" in demand was occurring in the nation.
Chief executive Benedetto Vigna informed the Financial Times that his company had decreased allocations of its supercars to Britain because "some people are getting out of [the country] for tax reasons", as reported by .
"What I can tell you is that we see a stabilisation over there," he said, adding that "a lot of people" had left the country.
Non-dom tax reforms
At its inaugural Budget last October, the administration revealed a series of measures to tackle what it viewed as unjust aspects of the tax system, including the reduced rate of 'carried interest' paid by private equity bosses, private school fees VAT exemption and the non-dom regime.
Ministers pressed forward with a manifesto commitment to abolish the non-dom regime, a 200 year old tax status that permitted wealthy foreigners only to pay º£½ÇÊÓƵ tax on income and gains from assets made in Britain.
In her Budget address, the Chancellor contended that "people who make the º£½ÇÊÓƵ their home should pay their taxes here".
However, it triggered a wave of high-profile exits from Britain, including former Goldman Sachs International chief executive Richard Gnodde, Aston Villa co-owner Nassef Sawiris and the steel magnate Lakshmi Mittal. Vigna's comments represent merely the most recent in a cascade of repercussions.
Property professionals have cautioned that values in London's premium housing sector have plummeted by up to 20 per cent over the past year, with desperate vendors battling to secure purchasers for their ultra-luxury residences. Personal staff agencies and exclusive clubs have similarly reported that appetite for their offerings has nosedived since last autumn.
Ferrari's sales realignment
The Ferrari chief executive explained that the harsher fiscal environment wasn't the sole driver behind his choice to redirect vehicles from the º£½ÇÊÓƵ market.
"Maybe when you sell to the º£½ÇÊÓƵ, that car cannot be sold somewhere else [because of its right-hand drive]. There are many different factors."
These observations emerge just one week following the supercar manufacturer's decision to raise its annual projections, alongside an ambitious €9bn revenue objective outlined in its market briefing.
