UK (Parliament Politics Magazine) – Britain is expected to lose 16,500 millionaires in 2025, more than any other country, as tax changes trigger an exodus of wealthy residents, new data shows.
As reported by The Guardian, the UK faces the largest millionaire outflow this year, as rising taxes prompt wealthy individuals to relocate abroad.
What did Henley & Partners reveal about the UK’s wealth exodus?
Henley & Partners project a record 16,500 millionaires will depart Britain in 2025, marking a sharp rise from 10,800 the year before. The research indicates this will be the biggest millionaire outflow any country has seen in the past ten years.
The move follows Labour’s increasing tax reforms launched after taking office last year, which included scrapping non-dom status and stricter inheritance tax rules.
Chancellor Rachel Reeves is reportedly considering a reversal of her 40% global inheritance tax policy amid growing concerns.
According to research, the UK is expected to lose twice as many millionaires as China in 2025, with China facing the second-biggest wealth outflow at 7,800.
Researchers observed 150,000 high-net-worth individuals using LinkedIn activity, property data, real estate registries, and corporate disclosures.
Which wealthy individuals have already left the UK?
- Richard Gnodde – Goldman Sachs’ most senior banker outside the US
- Nassef Sawiris – Co-owner of Aston Villa
- Ian Livingstone – British property tycoon
- Richard Livingstone – British property tycoon
What did Juerg Steffen say about the UK’s tax changes?
Juerg Steffen, chief executive of Henley & Partners, stated,
“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.”
He added,
“The long-term implications for Europe and the UK’s economic competitiveness and investment appeal are significant.”
What did Trevor Williams say about the UK’s declining wealth?
Trevor Williams, an ex-chief economist at Lloyds Bank, said,
“Since 2014, the number of resident millionaires in the UK dropped by 9pc compared with the world’s 10 wealthiest countries’ global average growth of more than 40pc.”
He added,
“Over the same period, the US saw a 78pc increase in millionaires – the fastest wealth growth [among these countries].”
How many business leaders have left the UK?
Experts warn that the exact number of non-doms and UK entrepreneurs who have exited won’t be known until tax records are published in 18 months.
A recent Bloomberg study revealed that around 4,400 business leaders left Britain in the last 12 months.
On 23 June, Reform UK proposed a controversial plan to charge non-doms £250,000 annually – a move that has reignited debate over the UK’s wealthy elite.
Which European countries are struggling to retain the wealthy?
The following European countries are mentioned with their respective net millionaire departures:
- France – 800
- Spain – 500
- Germany – 400
Nigel Farage’s tax plan
- A one-off £250,000 fee to replace the abolished non-dom tax status
- A “Britannia Card” granting wealthy foreigners tax privileges
- Promises to raise £2.5bn annually from the card scheme
- Plans to distribute £1,000 annually to low-income Britons from the proceeds
What did Dan Neidle warn about Nigel Farage’s Britannia card scheme?
Dan Neidle warned,
“We believe there are three very serious problems with the policy. First, it would discourage highly skilled professionals from moving here – they couldn’t afford the £250,000 and would face a much worse tax outlook than they ever have in the UK, and worse than most other comparable countries. The Reform UK proposal would make the UK uncompetitive.”
He said,
“Second, all the recent changes to the non-dom regime mean that any Government would struggle to persuade the very wealthy that the ‘Britannia card’ would really provide a lifelong exemption, so take-up would be very limited.”
Mr Neidle added,
“Third, and most seriously, the card would provide a very large and expensive tax windfall to a small number of very wealthy people who are already here. Office for Budget Responsibility data shows that this would amount to £34bn of lost Government revenue over five years. That would have to be funded by either tax increases or spending cuts.”