One of the most premium car brands in the world has confirmed that it has cut the number of vehicles it sends to the UK following an exodus of wealthy customers in response to the abolition of non-dom status.
Ferrari announced that it had reduced the number of vehicles it exported to the UK about six months ago.
Reports suggest that this was down to Ferrari attempting to stop a decline in their residual value after wealthy individuals moved overseas to avoid tax changes.
Chief executive Benedetto Vigna said the luxury brand had seen a "stabilisation" in sales after amending the number of vehicles allowed in the UK.
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It follows decisions passed by the Government which aimed to abolish the "non-dom" status.
This applies to a UK resident who has a permanent home abroad for tax purposes, with people only required to pay tax on money earnt in the UK.
Wealthy individuals take advantage of this measure as they can pay less tax in a nation which has lower rates, allowing them to keep more of their money.
Labour announced that it would abolish non-dom status and replacing it with a new "internationally competitive residence-based regime" from April 2025.
READ MORE: Ferrari unveils first electric supercar with jaw-dropping top speed and confirms future petrol plans
The CEO of Ferrari said changes to non-dom tax rates has contibuted to its decision to cut export rates
|PA/FERRARI
As outlined by Chancellor Rachel Reeves in the Autumn Budget, Labour said it would end the use of offshore trusts to shelter assets from Inheritance Tax.
The Labour MP for Leeds West and Pudsey also stated that the Government would scrap the planned 50 per cent tax reduction for foreign income in the first year of the new regime.
Speaking to the Financial Times, Vigna said: "Some people are getting out of that country for tax reasons.
"There are many different factors. Maybe when you sell to the UK, that car cannot be sold somewhere else [because of its right-hand wheel]."
Ferrari has also battled against issues stemming from President Trumps' tariffs this year
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In response to claims that wealthy individuals were leaving the UK, the Chancellor described it as "scaremongering".
"This is a brilliant country and people want to live here. I think, when people scaremonger again this year, we should take some of that with a pinch of salt," she told the Guardian.
Rachel Reeves is preparing to deliver the Government's Autumn Budget on November 26, with some suggesting that a wealth tax could be introduced.
Experts have estimated that the Chancellor could be dealing with a £50billion financial black hole, which would require significant effort to fill.
Details of the Ferrari Elettrica were unveiled on the brand's Capital Markets Day 2025 | FERRARILuxury automotive brands around the world have dealt with one of the most difficult years in recent memory given the impact of US President Donald Trump's tariffs.
Ferrari acknowledged that "trading policies and tariffs" had contributed to instability in the market, as well as the ongoing conflicts in Ukraine and the Middle East.
During its Capital Markets Day earlier this month, Ferrari confirmed that it would be unveiling its Elettrica model next year and averaging four new car launches per year between 2026 and 2030.
The Italian marque also outlined its 2030 aims, which includes a product line-up of 40 per cent petrol and diesel vehicles, 40 per cent hybrids and 20 per cent electric.