Why Ultra-Rich Businessmen Are Leaving Britain: The UK Exodus Explained

India.com

4 days ago

In 2024, a total of 2,06,378 Indians gave up their citizenship and the number was 2,16,219 in 2023, according to data from the Ministry of External Affairs. Rich Indians living in the country often make headlines. It's often claimed that rich people leave India to get a better quality of life abroad. The pothole roads, flooded streets, long traffic jams and power cuts make India one of the worst places for taxpayers to live in. Now, while it seems common in the case of India, how will you react if we tell you that billionaires are exiting Britain as well?
One of the United Kingdom's richest residents, Norwegian-born shipping magnate John Fredriksen, recently declared that 'Britain has gone to hell'. According to Forbes, Fredriksen has a net worth of $17.3 billion (nearly Rs 1.43 lakh crore and his exit plan is part of an increasing exodus of ultra-rich businessmen from the UK. The businessman is reportedly planning to shift to the UAE. However, this is not something new for Britain given recent trends.
Ultra-Rich Exodus Reason
Henley & Partners, residence and citizenship advisory firm, estimates that around 16,500 millionaires are projected to leave the UK in 2025—more than any other high-income country. Despite maintaining the fifth-largest millionaire population globally, the UK is the only nation among the top ten wealthiest to have experienced a decline in millionaire numbers over the past decade. This trend is largely attributed to recent changes in tax policy, such as increased inheritance tax, the introduction of a 15% VAT on private school tuition, and alterations to the country's residence-based tax rules. These shifts have made the UK less appealing to high-net-worth individuals. Notable figures who have recently relocated include billionaires Christian Angermayer and Nassef Sawiris, the latter being the owner of Aston Villa Football Club.
The exodus of the wealthy is primarily driven by the UK government's decision to overhaul long-standing tax practices, including the abolishment of the 'non-domiciled' (non-dom) status. This regime previously allowed UK residents to avoid taxation on foreign income if they claimed their permanent home was abroad. The move to eliminate this provision has prompted many ultra-wealthy individuals to seek more tax-friendly jurisdictions.
Labour Chancellor Rachel Reeves formally ended the non-domicile tax status as part of the party's October 2024 Budget, marking a major pillar of the new government's economic reform plan. Determined to eliminate tax avoidance strategies, the Labour administration has focused on closing loopholes that previously enabled individuals to keep offshore earnings beyond the reach of UK tax authorities. Reeves also introduced stricter rules targeting the use of offshore trusts, effectively preventing their use to sidestep the 40% inheritance tax.
Current UK tax regulations also place firm limitations on those who leave the country but maintain personal or professional connections. Individuals no longer considered UK tax residents are only allowed to spend a maximum of 90 days per year in the country and are restricted to working no more than 30 days during that time.
Who Is John Fredriksen?
John Fredriksen, a Norwegian-born billionaire and one of the wealthiest individuals in Britain, is reportedly putting his historic Georgian estate in London on the market. The property, known as The Old Rectory and located in Chelsea, spans approximately 30,000 square feet and is valued at around Rs 2,800 crore. With 10 bedrooms, a grand ballroom, and two acres of landscaped gardens—said to be the third-largest private garden in London—it ranks among the most expensive homes in the UK.
Now 81, Fredriksen recently announced to Norwegian publication E24 that he is moving to the United Arab Emirates, citing dissatisfaction with the UK's decision to abolish the non-domicile tax regime. Earlier this year, he also closed the London headquarters of his shipping company, Seatankers Management.
The Old Rectory dates back to the 1720s and once served as the residence for the rector of Chelsea parish church. Fredriksen acquired the property in 2001 for £37 million (around Rs 400 crore), following its previous sale in 1995 to Greek shipping tycoon Theodore Angelopoulos for £22 million (approximately Rs 235 crore). In 2004, Fredriksen reportedly rejected a £100 million (roughly Rs 1,000 crore) offer from Russian billionaire Roman Abramovich. Going forward, control of Fredriksen's vast oil and shipping business is expected to pass to his twin daughters, Cecilie and Kathrine Fredriksen.
Lakshmi Mittal To Leave UK
Reports suggest that billionaire steel magnate Lakshmi Mittal, who has lived in the UK for nearly three decades, is now planning to leave the country. With a net worth of £14.9 billion in 2024, Mittal was ranked seventh on The Sunday Times Rich List of the UK's wealthiest individuals. Among his prominent assets is a lavish mansion on Kensington Palace Gardens in London, which he purchased in 2004 from former Formula 1 chief Bernie Ecclestone for £67 million—a record-breaking price at the time. Sources familiar with his portfolio also indicate that Mittal has been investing in property in Dubai, signalling a potential shift in his residential base.
UAE Among Top Destinations
The United Arab Emirates is rapidly establishing itself as the leading destination for relocating millionaires, with projections indicating that 9,800 high-net-worth individuals will move there in 2025, bringing an estimated $63 billion (Rs 5.23 lakh crore) in combined wealth. Alongside the UAE, countries like Italy and Switzerland are also attracting affluent individuals looking to escape the UK's increasingly stringent tax regulations.