Record 9,500 millionaires expected to leave the UK this year

This study highlights the highest ever outflow of millionaires from the UK, more than doubling the 4,200 who left the country last year - which was itself the highest number on record. The trend reflects a steady accumulation of factors detracting from the UK’s appeal to high-net-worth individuals, but with Britain currently under its heaviest tax burden since the 1940s and concerns growing about how the new government’s tax plans will add to this burden, one of the primary reasons for leaving the UK is to reduce their tax liabilities.

“The outflow of high-net-worth individuals already generated by the economic and political context is now being accelerated.”

Hannah White - CEO, Institute for Government (IfG)

UK fiscal policy is acting as a catalyst for the exodus, with high net worth individuals worried that their equity and savings are being eroded by already high and potentially rising taxation of capital gains, the ending of tax benefits for non doms, and the prospect of spending much more on private education for their children, helping to fuel greater numbers of departures.

It is likely that the individuals most affected and free to move will consider other jurisdictions which offer a more favourable tax outcome and a lifestyle that meets their requirements.

Dubai and the UAE, with low crime rates and zero personal income tax, capital gains tax and inheritance tax has seen the largest influx of millionaires. With a thriving tech sector and an attractive environment for retirement, the USA is the second most popular destination, and stable democracies with high standards of living, including Australia and Switzerland also saw significant net inflow of millionaires.

“This represents a record outflow for the UK. The top destinations for millionaires leaving the UK include Paris, Dubai, Amsterdam, Monaco, Geneva, Sydney and Singapore, and retirement hotspots Florida, the Algarve, Malta and the Italian Riviera.”

If you are considering emigrating from the UK and would like to discuss your plans with one of our international dual-qualified financial planning and wealth management experts, schedule a meeting with us today.