Wealth Flight Intensifies: UK to Lose 16,500 Millionaires
High earners are relocating in large numbers in response to the scrapping of the non-domicile status in favour of a residency-based taxation regime. Those who have lived in the UK for more than four years now face UK income tax, capital gains tax and a punitive 40% inheritance tax on their worldwide assets. Earlier measures, including the termination of the Tier 1 Investor Visa in February 2022, compounded the impact.
Tax advisers report that up to 29% of very high-net-worth individuals are now considering changing their tax domicile. The estimated £66 billion of investable assets expected to leave this year underscores the financial scale involved.
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Popular destinations include the UAE, which is projected to attract a net 9,800 millionaires, followed by the US, Italy, Switzerland, and Portugal and Greece. The contrast highlights a shift in global wealth flows, with low-tax jurisdictions offering stability and investment-friendly environments.
The departure is not limited to soured perception. Over the past year, more than 4,400 UK-based company directors—mainly in finance, insurance and property—have relinquished their UK roles, with April seeing a 75% rise on the previous year. Prominent figures such as steel magnate Lakshmi Mittal, investor Max Gottschalk, promoter Eddie Hearn and heiress Anne Beaufour are among those affected.
Chancellor Rachel Reeves is reported to be reassessing aspects of the inheritance tax on global assets to slow the outflow. The Treasury has expressed intent to ensure international competitiveness while funding public services.
Analysts warn that the loss of wealthy taxpayers will not just drain capital; it will affect consumer spending, philanthropy, innovation and jobs. FXGuard co‑founder Trevor Williams notes the UK is the only G10 country facing negative millionaire growth since 2014. Financial firms highlight that each non-dom contributes an estimated £400,000 annually to the economy.
Survey data from Oxford Economics indicates up to 60% of non‑dom clients may depart within two years. The Office for Budget Responsibility projects a 12–25% exit rate, though some government estimates suggest a lower 1,000 non‑domils may leave.
Globally, this shift appears part of a broader migration pattern. Europe's wealthy are bypassing traditional hubs—France, Spain, Germany—while countries like Italy, Portugal, Switzerland and Greece attract them. Asia and the Middle East, including Saudi Arabia, Thailand, and Singapore, along with Caribbean nations and African beach havens, are emerging as wealth magnets.
The phenomenon dubbed 'Wexit' marks a strategic reassessment of where opportunity resides. UK wealth managers and executives argue that while tax reform is vital, excessive burden risks eroding the UK's status as a destination for global capital.
Industry watchers caution that unless the UK recalibrates its tax policy balance—particularly inheritance and global asset taxation—it may struggle to compete with jurisdictions that treat capital as a partner rather than prey.
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