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Sir Richard Branson insisted today that he is quiting Britain to “live life to the full” and not for tax reasons.

It has emerged that the billionaire is to live on his paradise island of Necker, which has a zero rate of income tax and a maximum “payroll tax” of 8% - much lower than the rate of up to 50% Sir Richard might have to pay if he was a UK resident.

But Sir Richard took to his official Twitter account today to defend his decision to leave Britain for Necker, calling it his “home” where “my family and I are able to truly relax”.

The decision to leave the country for the British Virgin Islands is a turnaround for the charismatic 63-year-old entrepreneur, who has draped himself in the Union Flag to promote his business.

He wrote on Twitter: “We are fortunate enough to live on Necker, the most beautiful place in the world, because it is our home where we can live life to the full.

“I have not left Britain for tax reasons, but for my love of the beautiful British Virgin Islands and in particular Necker Island, which I bought when I was 29 years old, 34 years ago as an uninhabited island on the edges of the BVI.

“Over that time, we have built our home there, a place where my family and I are able to truly relax.”

A spokesman for the Virgin Group founder said he had been there for seven years and stressed it made no difference for tax purposes whether he was in the UK or British Virgin Islands.

He sold his Oxfordshire mansion to his children Holly, 31, and Sam, 28, for £1.35million in August last year - but the transfer is said to have taken place up to five years ago, it was reported.

Sir Richard had also sold his mansion in Holland Park, west London, around seven years ago after putting it up for sale for £17.5million.

Non-residency rules mean Sir Richard is now permitted to be in Britain between 46 and 183 days a year.

His spokesman said: “After almost 40 years of working in the UK, Richard, now in his 60s, chose to live on his island Necker in the British Virgin Islands, an island he bought in 1979.

“He moved there more than seven years ago, but rather than retiring there, he spends 90 per cent of his time starting not for profit ventures and raising millions for charity through speeches and other charitable engagements.

“Since he gives 100 per cent of any monies he earns from these to charity, it makes no difference for tax purposes whether he is in the UK or the BVI.”

(Image: PA)

Sir Richard regularly hosts parties for friends and family on Necker, including A-list celebrities such as Leonardo DiCaprio, Prince Harry and Jennifer Lopez.

Two years ago a devastating fire believed to have been caused by lightning burned down the island’s Great House while 20 guests were staying there.

Oscar-winning actress Kate Winslet saved his 90-year-old mother Eve by picking her up and taking her out of the house to safety.

But a huge amount of work has been completed to renovate it and he can now move in.

According to reports, the move means the entrepreneur will not be required to pay any tax on personal income made outside Britain, although he will still be taxed on UK earnings.

His companies, which include airlines, balloon flights and health clubs, pay a significant amount of corporation tax.

Sir Richard started the Virgin brand as a mail order record retailer in 1970 and founded the Virgin Atlantic airline 14 years later.

He is Britain’s sixth wealthiest man with a £2.9bn fortune, according to Forbes magazine.