Here’s a breakdown of what’s going on — why Ferrari is cutting back car supply to the UK, and how that ties into recent tax changes:

What changed in UK tax rules for the wealthy / non-doms

From 6 April 2025, the UK government abolished the old “non-dom” (non-domicile) tax status, which allowed certain UK residents whose domicile is overseas to avoid paying UK tax on foreign income and gains unless remitted.


It replaced this with a residence-based regime, including a “Foreign Income & Gains” (FIG) regime for qualifying individuals. Under this, new arrivals (meeting criteria, e.g. not UK resident in prior 10 years) can in first four years have relief on foreign income & gains even if brought into the UK

There are also changes to inheritance tax (IHT) rules: after 10 years of UK residence, individuals are liable to IHT on worldwide assets; there is also a “tail” after leaving UK.

What Ferrari says and how this connects

Ferrari has said it is reducing the number of cars it allocates or exports to the UK.

Key reason: residual values (second-hand values / what cars are worth after purchase/leasing period) are falling. Some of this appears to be linked to wealthy people leaving the UK (or less demand there) for tax reasons. Ferrari sees that fewer rich clients remaining means the used value of their vehicles drops. Low resale values mess up leasing and financing because depreciation (loss of value) is a critical factor in those models.

Another factor: models that are Right-Hand Drive (RHD) tend to be less saleable in many other markets, so if Ferrari makes too many RHD cars that can only be sold in limited markets, oversupply can hit those residual values particularly badly.

Why those connections make Ferrari cut supply

Putting it all together:

Ferrari wants to maintain strong residual values. If used values drop, the perceived value of new cars falls; leasing payments rise; buyers may be less willing to take the depreciation risk.

The tax changes reduce the attractiveness of owning a luxury/prosperity status car in the UK (because wealthy individuals lose some favourable tax treatment). If some wealthy people decide to move away or buy elsewhere, demand in the UK for high-end cars may decrease.

Lower demand + same supply = downward pressure on resale values. To protect their brand, margins, resale/lease business, Ferrari can respond by reducing supply.

Broader implications / uncertainties

The move shows how taxation and wealth migration have knock-on effects in sectors you might not immediately think of (luxury cars, leasing markets, etc.).

There’s some uncertainty: Ferrari said it started reducing allocations about six months ago to stabilize resale values.