I'm UK's richest young entrepreneur eyeing up Dubai move - it's Rachel Reeves' fault'

Herman Narula, Britain's richest self-made entrepreneur under 40, says he is preparing to leave the UK for Dubai amid fears of a Treasury "settling-up" tax on emigrating millionaires. Mr Narula, the 37-year-old co-founder of £2.5bn tech company Improbable, who is worth well over £700million, is reluctant to leave Britain but felt forced to consider relocating after reports that Chancellor Rachel Reeves plans to impose a tax on capital gains for wealthy individuals who move abroad.

He said: "I don't particularly want to leave the UK - but I might want to one day and I don't want to be banned from that option. Introducing an exit tax is irresponsible. It has forced a lot of people to leave." The so-called "exit tax" would charge entrepreneurs on gains made while living in Britain if they subsequently relocate to a lower-tax jurisdiction.

While similar levies exist in other countries, critics warn that this could discourage founders from setting up or growing businesses in the UK, or prompt them to sell out early.

Mr Narula accused the Government of introducing a "series of anti-entrepreneur policies" that risk driving start-ups overseas. He told The Daily Telegraph: "It's bonkers that new taxes are landing on great British start-ups. The current speculation makes it too unstable and too risky to maintain residency, and it makes me question bringing new business to Britain."

Born in India, Mr Narula has been a UK citizen for decades. He studied at Cambridge and learned to code at 12 before founding Improbable at 29.

He explained: "The impression I am left with is that the country doesn't want immigrants, especially not ones that start companies."

The company, which develops technology for gaming, defence, AI and cryptocurrencies, raised $500m (£380m) from Japanese tech giant SoftBank in 2017 and was most recently valued at $3.4bn in 2022.

Mr Narula owns just under a third of the business, putting his stake at roughly £780m. Last year, Improbable spun out its defence division, which produces military simulation technologies, reflecting its expanding global footprint.

Mr Narula's warning comes as hundreds of start-up leaders publicly protest the Treasury's plans.

More than 1,000 founders have signed an open letter to Ms Reeves, organised by the Start-up Coalition, saying the proposed tax sends a message that entrepreneurs "aren't welcome" in the UK.

The coalition said: "Instead of rebuilding trust with entrepreneurs, a potential exit tax sends the opposite message: the beatings will continue until morale improves."

Mr Narula said the backlash echoes the decision of Revolut founder Nikolay Storonsky, who last month moved his main residence from London to Dubai a decade after founding the payments business in the UK.

He added: "It risks driving more founders away at a time when Britain is already struggling to retain talent against the US and the Middle East."

A Treasury spokesman declined to comment on the speculation surrounding the policy, stating: "We do not comment on speculation around changes to tax outside of fiscal events."

Mr Narula remains a prominent voice in the debate over Britain's treatment of high-net-worth entrepreneurs, highlighting the potential consequences of a tax policy that could see the UK lose a generation of start-up talent to Dubai and other low-tax jurisdictions.