Revolut bank boss Nik Storonsky quits the UK for the UAE

Revolut is a rising technology player but has struggled to gain a UK banking licence

Britain's Chancellor of the Exchequer Rachel Reeves with Revolut bank's chief executive Nik Storonsky, opening its global headquarters in London last month. AFP

FinTech magnate Nik Storonsky of the bank Revolut has joined the departure from the UK of wealthy high-profile figures to live in the UAE.

With the budget deficit rising and the tax net catching more areas of income and wealth, thousands have moved out of the UK in recent years.

Russia-born Mr Storonsky, 41, has changed his residence from the UK to the UAE, according to regulatory filings. His relocation was effective as of a year ago, a UK filing for his family office shows.

Revolut is ranked as one of the most valuable privately held businesses, thought to be worth $45 billion.

The UAE has been the most popular destination for wealthy people leaving the UK, analyses of figures compiled in recent months show. And the numbers leaving have been rising. A look into the number of company directors changing their address this summer showed 3,790 directors reported to be leaving, compared with 2,712 over the same period a year earlier.

Prominent leavers reportedly included Nassef Sawiris, the Egyptian tycoon; Shravin Bharti Mittal, the Indian businessman; John Fredriksen, the Norwegian-Cypriot shipping magnate; and Richard Gnodde, the South African-born vice president of Goldman Sachs. Mr Fredriksen, who told a Norwegian newspaper that Britain had “gone to hell”, was said to be putting his £250 million ($332 million) Chelsea mansion – The Old Rectory – on the market.

Looking to list

Mr Storonsky’s net worth almost doubled to about $14 billion following the higher valuation the London-headquartered company received in a secondary share sale announced last month. He is now the world’s 209th-richest person, according to a Bloomberg index.

The announcement comes just weeks after Revolut debuted a plan to enter 30 markets by the end of the decade, a strategy that will ultimately see the fintech invest $13 billion as it tries to amass 100 million users.

Britain's Chancellor of the Exchequer Rachel Reeves opens Revolut's global headquarters in London, in September. AFP

Even so, the chief executive has been adamant that the UK remains a priority for the company and he is focused on securing a full bank licence in Revolut’s home country, something that has so far been a drawn-out process.

Mr Storonsky's departure seems bound to raise new questions about the impact of tax reforms on the country’s wealthiest residents. He moved to the UK early in his career and reportedly holds British citizenship.

The Treasury has defended its new regime ending non-domiciled status for internationally committed residents. The Labour Party leadership has faced demands for a wealth tax from its rank and file.

“The UK remains highly attractive,” a Treasury spokesman has said. “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, so every long-term resident pays their taxes here.”