Ferrari reduces UK car exports amid tax changes and wealthy exodus
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Ferrari limits UK car exports as wealthy residents relocate amid new tax reforms and the end of non-dom status
Italian luxury carmaker Ferrari has reduced the number of vehicles it exports to the United Kingdom following changes to tax laws and the abolition of the country’s non-domiciled (non-dom) regime. The move comes as some wealthy residents relocate overseas to avoid higher taxes, which has affected demand for high end vehicles in one of Ferrari’s key European markets.
Ferrari’s decision, made about six months ago, aims to stabilize the brand’s residual values the expected resale or secondhand prices of its cars. Benedetto Vigna, Ferrari’s chief executive officer, explained that the company had seen a “stabilization” in UK sales since reducing supply. “Some people are getting out of that country for tax reasons,” Vigna said in an interview with the Financial Times. He added that taxes were not the only factor affecting car values, noting that right-hand drive vehicles sold in the UK are harder to resell in other markets.
The UK government’s decision in April to abolish the non-dom tax status has been controversial. Under the old system, UK residents who declared their permanent home abroad could avoid paying taxes on global income and assets. Its removal has sparked debate about whether high net worth individuals would leave the country and what impact that might have on the luxury sector.
The chancellor, Rachel Reeves, dismissed claims of a large-scale exodus of wealthy individuals, calling them “scaremongering.” She argued that the UK remains an attractive place to live and invest. “This is a brilliant country and people want to live here,” Reeves told the Guardian, adding that predictions of mass departures should be taken “with a pinch of salt.”
Reeves has indicated that the government will continue targeting the wealthy for higher taxes in the upcoming budget. Although she ruled out introducing a formal “wealth tax,” she has kept open the possibility of other measures aimed at increasing tax contributions from top earners. Among the options being discussed are raising the capital gains tax rate, applying national insurance to rental income, and adding higher council tax bands for expensive properties.
Ferrari’s move has reignited conversations about how tax policy can influence the behavior of the ultra-rich and impact luxury markets. The company, which typically serves a small but high-spending customer base, relies heavily on maintaining strong resale values to attract buyers. In high-end car markets, leasing and financing deals are often based on depreciation the difference between a car’s new price and its expected resale value.
When residual values drop, the cost of financing and leasing increases, making cars more expensive to own even for wealthy customers. According to data from Autotrader, the resale value of Ferrari’s Purosangue SUV fell by 12.2% between January and October, while the SF90 Stradale supercar dropped by 6.6% during the same period. These declines have raised concerns within the company and among dealers about the overall stability of the UK’s luxury car segment.
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However, Ferrari appears to be regaining control of the market through its limited supply strategy. By cutting the number of vehicles exported to the UK, the brand has been able to reduce oversupply and maintain exclusivity a key part of Ferrari’s identity and pricing strategy. Prices have started to stabilize in recent months, suggesting that the approach is working.
The Ferrari 296 GTB, launched in 2022, provides an example of current pricing dynamics. While its recommended retail price starts at £256,275, used versions are listed for around £189,490 on Autotrader. Although that represents a decline, it also signals that values are levelling off after a sharp drop earlier in the year.
Ferrari’s cautious move highlights how shifts in fiscal policy can influence luxury consumer behavior and how brands must adapt to protect their market value. As wealth and spending patterns change in the UK, carmakers like Ferrari are carefully balancing supply, pricing, and brand exclusivity to navigate the new tax environment.
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