2025 Wealth Migration: Thousands of Company Directors are leaving the UK
There has been a significant increase in UK company directors relocating abroad since the Labour government’s 2024 Autumn Budget, which introduced sweeping changes to the tax regime, impacting high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.
Companies House filings show that more than 2,400 directors changed their country of residence in the months following the UK’s 2024 October Budget¹.
While the data does not capture the individual motivations or shareholding of the directors, it indicates a growing trend among UK business owners and entrepreneurs to identify and relocate to jurisdictions with more favourable tax environments.
What changed in the UK October 2024 Budget?
Capital Gains Tax (CGT)
Capital Gains Tax (CGT) was increased in the Autumn Budget from 20% to 24% for higher and additional rate taxpayers with immediate effect (from 30 October).
CGT is payable on profits made from the disposal of assets (in excess of the CGT annual personal tax-free allowance of £3,000) including the sale of a business.
Business Asset Disposal Relief (BADR)
Previously known as ‘Entrepreneurs Relief’, and 'Investors’ Relief', Business Asset Disposal Relief (BADR) provides a discounted CGT rate for business owners (and investors in their businesses) on the initial million pounds of profit.
BADR was reduced from 6 April 2025, with the applicable discounted CGT rate increasing from 10% to 14%. On 6 April 2026 this rate will increase further, from 14% to 18%.
Business Property Relief (BPR)
For entrepreneurs and business owners looking to hand their business on to their children (or beneficiaries), Business Property Relief (BPR) has also been reduced, limiting relief to 50% for assets over £1 million from April 2026, impacting the succession plans for businesses.
The Companies House data suggests that entrepreneurs and business owners have been unwilling to see this increasing level of tax on their life's work materially erode the wealth that they had planned to rely on in retirement and pass on to their children.
Many have therefore chosen to relocate abroad to maintain non-UK tax residency for at least five years, in order that any gains realised on their assets would not be subject to UK CGT.
Case Study
Scenario:
Jane, a top-rate taxpayer in the UK, has decided to sell her agency business², valued at £2 million.
Option 1 - Jane remains in the UK
If Jane were to sell her agency now (in August 2025), while still a UK resident, she would face the following CGT obligations:
- Annual CGT Allowance: The first £3,000 of profit is exempt from CGT.
- CGT on Remaining Profit: Assuming a profit of £2 million, Business Asset Disposal Relief [BADR], formerly known as Entrepreneurs’ Relief, would apply. This relief reduces the CGT rate on the first £1 million of profit to 14%. The remaining profit, minus her annual allowance, would be taxed at the higher CGT rate of 24%.
- CGT at 14% [with BADR] on first £1 million: £1 million x 14% = £140,000
- CGT at 24% on remaining £997,000: £997,000 x 24% = £239,280
- TOTAL CGT Payable: £140,000 + £239,280 = £379,280
Future CGT Increases
If Jane sold her business after 6 April 2026, the CGT payable would increase to £419,280 if she remained in the UK³.
Option 2 - Jane relocates to the UAE
If Jane establishes and maintains non-UK tax residency for at least five years, any gains realised would not be subject to UK CGT.
It’s important to note that if Jane were to return to the UK within five years, the Temporary Non-Residence Rules would allow HMRC to tax gains on assets sold while she was abroad. Maintaining her non-UK tax resident status is therefore essential.
By selling her business after establishing non-UK tax residency and maintaining this for five years Jane could potentially avoid incurring up to £419,280 in CGT on the sale of her business³.
Strategic planning in a rapidly evolving tax landscape
UK tax changes introduced in October 2024, and those now being anticipated as part of the forthcoming 2025 Autumn Budget announcement, highlight the need for a more integrated and forward-looking approach to wealth planning.
We are increasingly supporting clients in:
- Structuring global assets and income to minimise unnecessary tax exposure and improve cross-border efficiency.
- Reassessing long-term inheritance and estate planning in light of the significant changes to the UK’s inheritance tax (IHT) regime.
Where are they relocating to… and why?
United Arab Emirates (UAE)
Dubai continues to be a leading destination for international investors and professionals, offering a zero-tax environment on personal income and capital gains.
Its reputation as a global financial hub is supported by a pro-business regulatory framework, world-class infrastructure, and strong international connectivity. A range of residency options, including those linked to investment and business establishment, make the UAE an increasingly strategic base for entrepreneurs and company directors alike.
United States
The US remains a highly attractive destination for both HNWIs and UHNWIs, particularly tax-friendly states like Florida and Texas. Both states offer no state income tax, making them attractive for HNWIs and UHNWIs seeking to mitigate tax exposure. In addition, the US provides significant business and investment opportunities, particularly in technology, real estate, and financial markets.
For UHNWIs, cities like Miami and Houston have become epicentres of luxury real estate, with a growing international presence. The country’s reputation for innovation and entrepreneurship further adds to its appeal for individuals looking to grow their wealth.
Australia
Australia has long been a top choice for HNWIs seeking quality of life and political stability. The country's major cities, like Sydney and Melbourne, offer a vibrant economy, a high standard of healthcare and education, and an overall safe and welcoming environment.
While Australia doesn’t offer the tax-free advantages of the UAE, it does provide favourable tax opportunities depending on residency status and wealth structuring.
For UHNWIs, Australia’s stable political environment and strong property market provide an attractive destination for long-term wealth protection. Its geographic isolation also makes it a safe and desirable location in times of global uncertainty.
Switzerland
Switzerland remains a long-standing favourite destination for UHNWIs. Switzerland’s strong reputation for stability and security makes it a prime location for those seeking to safeguard their wealth.
Switzerland offers political stability, luxury real estate, and some of the best healthcare and education systems in the world. Its central location in Europe also allows easy access to international business centres.
Making the Complex Simple for Expats Worldwide
At Forth Capital, we specialise in helping high-net-worth (HNW) internationally mobile executives build, optimise, and protect their wealth - before, during and after a move abroad. From optimising your tax position and managing currency exposure, to asset management and estate planning, we provide clear, transparent, personalised advice to help you ensure that your wealth is structured tax-efficiently and that costly mistakes are avoided.
We work closely with clients facing global financial challenges, offering joined-up solutions that align your investments and assets with your long-term goals. The aim is simple: effective, integrated planning that works wherever life takes you.
If you’d like to schedule an initial consultation with me to discuss your financial planning, wealth management or pensions please get in touch today.
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Niamh Aitken DipPFS |
Frequently Asked Questions
Individuals [including self-employed sole traders, partners in business partnerships, and company owners] are given an annual CGT allowance of £3,000 [down from £6,000 in the 2023/24 tax year and £12,300 in the 2022/23 tax year].
CGT is payable on any profits in excess of the CGT Annual Allowance, from the sale of assets in that tax year. The allowance resets annually on April 6 when the new tax year begins.
- 18% on residential property
- 18% on gains from other chargeable assets [increased from 10% on 30 October 2024]
CGT is payable on any profits in excess of the CGT Annual Allowance, from the sale of assets in that tax year. The allowance resets annually on April 6 when the new tax year begins.
- 24% on residential property gains
- 24% on gains from other chargeable assets [increased from 20% on 30 October 2024]
[For personal representatives and trustees, the rate of capital gains tax will also change from 20% to 24% for disposals made on or after 30 October 2024]
Business Asset Disposal Relief [previously called 'Entrepreneurs’ Relief' - updated in the Finance Act 2020)] reduces the rate of Capital Gains Tax (CGT) on disposals of businesses or business assets.
For individuals with assets that qualify for Business Asset Disposal Relief, the CGT will change:
- from 10% to 14% for disposals made on or after 6 April 2025, and
- from 14% to 18% for disposals made on or after 6 April 2026.
There is a cumulative lifetime limit for qualifying gains of £1 million for disposals on or after 11 March 2020.
A claim for Business Asset Disposal Relief must be made on or before the first anniversary of the 31 January following the tax year in which the disposal is made.
1 Source: Financial Times, ‘Thousands of company directors leave UK after Labours Tax Changes’, 6 August 2025. Data shows UK company directors who are British nationals (i.e. not non-doms).
² Please note that the base condition for any reductions is that the business must have been held for a minimum of two years.
³ Figures based on UK tax rates and legislation as of 12 August 2025. These could be subject to change over the course of the five-year period.
- This communication is for information purposes only and does not constitute financial, legal, or tax advice.
- All content is based on current UK legislation and is subject to change. All planning arrangements should be regularly reviewed in consideration of legislative updates.
- Pension regulation and tax treatment vary between jurisdictions. Any reference to UK or international pension rules is portrayed in general terms and is not intended to reflect individual circumstances. Any examples provided are hypothetical and for illustrative purpose only. Outcomes will differ based on individual circumstances and local law and regulation.
- Pension transfers carry specific risks and may not be appropriate for everyone. The suitability of any transfers or investments should be assessed on an individual basis.
- Past performance is not a reliable indicator of future results. The value of investments can fall and rise, and you may not get back the amount originally invested.
Last updated 12 August 2025
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