High-Tax Britain Exodus: Millionairess Declares Kent Castle a 'Micronation' in Tax Protest

In a dazzling, deliberately provocative spectacle, millionaire businesswoman and former reality TV star Ann Kaplan Mulholland has dramatically declared her sprawling 13th-century home, Lympne Castle, a "micronation." The highly choreographed event, which featured an elaborate procession with drag queens, jesters on stilts, cardinals, and beefeaters, was a pointed protest against the UK's recent tax reforms, which she argues are forcing high-net-worth individuals like herself to flee the country.

Mrs. Kaplan Mulholland, 64, who possesses an estimated net worth of £500 million, travelled by horse and carriage to her coronation at the Grade I-listed mediaeval castle, which is set on a 135-acre estate near Hythe. Emerging from a turret with her plastic surgery tycoon husband, Dr. Stephen Mulholland, the 'royal' couple waved to guests, who included friends in period dress. The creation of the so-called "Principality of Lympne"—a self-declared country not officially recognised by governments—is, however, a symbolic act, as Mrs. Kaplan Mulholland has already finalised plans to leave the UK.

The Reasons Behind the 'Micronation' Declaration and Departure

The millionaire's drastic action is a direct response to the abolition of the UK's Non-Domiciled Individuals (non-dom) tax status, a change spearheaded by Labour's Shadow Chancellor, Rachel Reeves. The key reasons driving her imminent departure and public protest are multifaceted:

• Abolition of Non-Dom Status: The core issue is the scrapping of the non-dom regime, which was in place since the 1700s. This status allowed UK residents whose permanent home was considered to be overseas to pay UK tax only on their UK-earned income and gains, sheltering their vast foreign assets from UK tax for up to 15 years.
• Unfavourable Replacement Regime: The new system, which became effective in April 2025, replaces the non-dom status with a residence-based system. New residents receive tax relief on foreign income and gains for only their first four years in the UK. After this short period, they become fully liable to pay UK tax on their worldwide income and gains. For the Mulhollands, who moved to the UK in 2022 and bought Lympne Castle in 2023, this four-year window is deemed too brief to justify remaining.
• Worldwide Inheritance Tax Liability: A significant financial concern is the new inheritance tax (IHT) charge on foreign assets. Under the previous regime, non-doms could often shield their worldwide assets from the UK’s 40 per cent IHT. Under the new rules, UK residents of more than 10 years now face paying IHT on their global assets after death—a potentially massive tax bill for families with global businesses and real estate.
• A 'Bad Business Decision' to Stay: Mrs. Kaplan Mulholland, a successful entrepreneur who made her fortune building the international small loans company iFinance, stated, "I’m a businesswoman. I’m not going to stay here and make a bad business decision... It makes no economic sense for individuals with business interests in other countries to stay here." The new rules mean the couple would face UK taxation on their overseas income and real estate gains, significantly reducing their disposable wealth.
•  Protest Against Political Rhetoric: The extravagant event was designed to draw international attention to what Mrs. Kaplan Mulholland views as punitive tax policies and hostile rhetoric toward the wealthy. She challenged political catchphrases, saying, "Rachel Reeves uses catchphrases like ‘the wealthy should pay their fair share of taxes.’ Well, we’re really wealthy and we pay our fair shares of taxes."
• Attraction of Favourable Tax Regimes Abroad: The UK's loss is a gain for nations offering attractive alternatives. The Mulhollands have chosen to relocate to Milan, Italy, which has a special flat-rate tax regime. This scheme allows high net worth individuals to live there and pay a fixed sum of just £200,000 per year on foreign income for up to 15 years. Mrs. Kaplan Mulholland praised this model, questioning why the UK did not offer a similar flat fee to retain investors.

The Canadian-born businesswoman, who also starred in the reality TV show The Real Housewives of Toronto, confirmed that she and her husband will be departing the UK in a matter of days. Once established in Italy, she will be restricted to staying in the UK for no more than 90 days per year to maintain her non-resident status and avoid the UK tax liabilities.

Despite the move, she confirmed they will retain ownership of Lympne Castle and will continue its established use as a wedding and hospitality venue, protecting the jobs of the approximately 100 employees there.

The Government previously estimated that only 10 per cent of non-doms would leave due to the changes, but tax experts and wealth advisors have cautioned that the true number of departures—and the subsequent capital flight—could be significantly higher, raising questions about the long-term economic impact of the tax reform. Mrs. Kaplan Mulholland made it clear that while she is leaving, her exit is not final: "If she changed the rules, I would come back."