Britain is on course to lose more millionaires than any other country in the world this year as the wealth exodus picks up pace, it was claimed today.
The annual Wealth Migration Report from Henley & Partners, a firm that advises affluent clients considering relocating, said high tax rates, particularly the abolition of the non dom regime, combined with sluggish economic growth were the biggest factors driving rich people away.
Henley & Partners estimate that 16,500 dollar millionaires - many from London - will quit the UK this year, putting it at the head of the global league table for the first time.
That is more than double the 7,800 forecast to leave second-placed China, which previously topped the leader board for a decade.
Last year’s study estimated the UK would lose 9,500 people with at least $1 million in investable wealth in 2024.
The United Arab Emirates is expected to see the biggest influx of millionaires with 9,800 overall in 2025, followed by the USA and Italy with 7,500 and 3,600 respectively.
Henley & Partners chief executive Dr Juerg Steffen said:“For the first time in a decade of tracking, a European country leads the world in millionaire outflows.
“This isn’t just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere. The long-term implications for Europe and the UK’s economic competitiveness and investment appeal are significant.”
The outflow accelerated last year when Rachel Reeves confirmed the abolition of non dom regime that allowed wealthy foreigners to live in the UK without having to pay tax on their overseas income and assets.
There was particular alarm that some overseas assets would become liable for Britain’s 40% inheritance tax (IHT) for the first time.
The Treasury is now reportedly looking at a possible U-turn on some of the more punitive aspects of the policy, including a reversal over IHT in order to stem the flow.
Reform Party leader Nigel Farage has also unveiled this week his own suggested scheme under which wealthy foreigner would be charged £250,000 for the right to be tax resident in the UK for a decade without their foreign assets being subject to UK tax.
Proceeds would be paid directly into the bank accounts of the 2.5m lowest-paid working British people.
But Deborah Carrivick, partner and head of the international private client team at law firm Birketts said:“Whilst we have assisted a number of high-net worth clients to leave the UK - including assisting with their trusts, succession planning, wills and changing tax position - we continue to see a large number of new arrivals who see the UK as an attractive global destination, as well as a number of returning ex-pats who fare well under the new rules. There are also many UK residents who are staying put as the benefits of remaining in the UK outweigh the costs.”
