Why Are Millionaires Leaving the UK?
Table of Contents
1. Fears Grow Over a Potential ‘Pensions Raid’
3. How Many Millionaires Are Actually Leaving?
4. Where Are Britain’s Millionaires Going?
5. Are Millionaires Still Leaving the UK in 2025?
6. Is Moving Abroad More Tax-Efficient?
A growing number of high-net-worth individuals (HNWIs) are leaving the UK, with tax policy widely cited as the driving force. Projections suggest that around 16,500 millionaires will depart Britain this year, exceeding the number leaving both China (7,800) and Russia (1,500).
According to provisional figures from the Henley Private Wealth Migration Report, the UK is experiencing a notable outflow of wealthy residents, while countries such as the UAE, the US, Italy and Switzerland are seeing strong inflows of affluent migrants.
Critics argue that recent policy decisions by the Labour government are accelerating this trend. Since taking office, the Chancellor has introduced tax rises totalling around £40 billion, and further increases are widely expected when the next budget is delivered in November. Forecasts suggest the tax burden could soon reach its highest level since the Second World War.
Tax rises have been broad-based, affecting businesses through higher National Insurance contributions, ending the non-dom regime, and extending inheritance tax exposure to agricultural estates. Analysts believe an additional £20 billion must still be raised, with wealthier individuals likely to shoulder much of that burden.
Henley & Partners argues that these changes have significantly undermined the UK’s appeal as a destination for wealth creation, investment and long-term residence.
That assessment appears to be supported by early data. Since the non-dom regime was abolished, around 1,800 individuals have already left the UK, with further departures expected as uncertainty over future tax policy continues.
1. Fears Grow Over a Potential ‘Pensions Raid’
Concerns are also mounting that pensions could become the government’s next target as it attempts to rein in ballooning borrowing levels.
Borrowing has surged well beyond expectations, growth remains stagnant, and debt interest is consuming an ever-larger share of public finances.
When pressure reaches this level, pensions are often seen as a convenient revenue source — even if the long-term consequences are damaging.
Further taxation of retirement savings could intensify capital flight and weaken the wider economy:
Raising taxes on retirement income reduces spending power among older households, who play a major role in domestic consumption. It also sends a worrying signal to international investors about the UK’s stability.
When policy becomes unpredictable, capital simply looks elsewhere.
A recent survey of UK financial advisers supports this view, it found that 99% expect tax rises in the next budget, with 69% predicting an increase in employee National Insurance and 64% expecting higher corporation tax.
These pressures are contributing to an estimated £66 billion capital outflow in 2025, as wealthy individuals relocate to jurisdictions offering more favourable tax conditions. Countries such as Italy, the UAE, Switzerland and the US continue to benefit from policies designed to attract international wealth — a sharp contrast to the UK’s current trajectory.
2. What Was Non-Dom Status?
Historically, the UK’s non-domiciled (non-dom) tax status allowed individuals who lived in Britain but had permanent ties elsewhere to pay UK tax only on income earned within the country. Overseas income and gains were taxed only if brought into the UK under the “remittance basis.”
This system ended in April 2025 and was replaced by a residence-based framework. Under the new Foreign Income and Gains (FIG) rules, individuals who have not been UK tax residents for the previous ten years can benefit from full tax relief on overseas income for their first four years of residence.
After that period, foreign income is taxed in full, aligning them with other UK residents. The reforms also tightened inheritance tax rules and reduced protections previously available through offshore trusts and excluded property structures.
Although the Office for Budget Responsibility accounted for behavioural changes when forecasting revenues, early evidence suggests the exodus of non-doms has far exceeded expectations. Some experts now argue the reforms may ultimately reduce, rather than increase, tax receipts.
3. How Many Millionaires Are Actually Leaving?
While reports suggest a sharp rise in wealthy individuals leaving the UK, some commentators argue the scale is overstated.
Data from New World Wealth indicates that 10,800 millionaires left in 2024, with a further 16,500 expected in 2025. However, critics note that the UK has more than three million millionaires, making the proportion relatively small.
Professor Rowland Atkinson of the University of Sheffield has pointed out that the number leaving represents “between close to zero and 1% of the UK’s millionaire population.”
Similarly, the Tax Justice Network notes that the 9,500 millionaires reportedly leaving in 2024 accounted for just 0.3% of the country’s total millionaire population.
They also argue that datasets often skew toward ultra-wealthy individuals, such as centi-millionaires and billionaires, who are inherently more mobile.
It’s also important to note that rising property prices have inflated the number of paper millionaires. Around 5% of UK homes are now worth over £1 million, meaning many homeowners qualify as millionaires purely due to property appreciation rather than liquid wealth.
With roughly 30.4 million homes in the UK, this places around 1.5 million people in that category.
However, the key distinction lies in mobility. Those with liquid wealth — not tied up in property — are far more able to relocate. In absolute terms, the UK is losing more high-net-worth individuals than any other country.
In 2024 alone, the UK reportedly lost 78 centi-millionaires and 12 billionaires, with further losses expected this year. According to the Sunday Times Rich List, the UK is home to around 156 billionaires and 352 centi-millionaires, making these departures proportionally significant.
So while the broader millionaire population remains large, the exodus of the wealthiest and most mobile individuals is becoming increasingly pronounced.
4. Where Are Britain’s Millionaires Going?
The outflow shows little sign of slowing. Henley & Partners forecasts a net loss of 16,500 millionaires in 2025, placing the UK among the world’s largest net losers of wealthy residents.
The UAE remains the top destination, attracting around 6,700 millionaires in 2024 alone, thanks to zero income tax, investor-friendly visas and a stable regulatory framework.
Italy continues to draw wealthy British residents despite raising its flat tax for new arrivals to €200,000 in 2024, with plans for a further increase to €300,000. Milan remains particularly attractive due to its lifestyle, business environment and relatively favourable inheritance rules.
Switzerland also remains popular, offering negotiated tax arrangements and canton-level residency deals that allow eligible individuals to pay fixed annual taxes rather than being assessed on global income.
5. Are Millionaires Still Leaving the UK in 2025?
As of October 2025, the answer appears to be yes. Sluggish growth, repeated tax changes, and the abolition of the non-dom regime have accelerated the pace of departures.
Henley estimates a net loss of around 16,500 millionaires in 2025, while countries such as the UAE continue to post strong gains. Italy, Switzerland and the US remain prominent alternatives for globally mobile wealth.
The implications for the UK are significant: reduced tax revenue, fewer high-value businesses, and a less attractive investment environment. Early data suggests hundreds of wealthy residents left shortly after the April 2025 tax changes came into effect.
6. Is Moving Abroad More Tax-Efficient?
With the UK’s tax burden now at its highest level in decades — and likely to rise further — many individuals are reassessing their long-term financial strategies.
For those with international flexibility, relocating may offer more predictable tax treatment, better wealth preservation, and stronger long-term planning opportunities. However, moving abroad carries legal, financial and lifestyle implications that require careful planning.
Seeking professional advice can help ensure any relocation decision aligns with both personal goals and long-term financial security.
7. Currency Risk
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8. Conclusion
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