Millionaires leave Britain in record numbers since Labour took power
Millionaires have left Britain in record numbers since the new Labour government took power amid a crackdown on non-dom residents and sweeping tax hikes.
The Treasury is facing fresh calls to reverse plans to abolish the non-dom tax status in April and replace it with a residence-based regime that also ropes in non-doms’ overseas assets into UK inheritance tax (IHT).
Tax advisers are also reporting that a growing number of UK-based entrepreneurs are preparing to leave following the tax rises announced in Rachel Reeves’ Autumn Budget.
The UK lost a net 10,800 millionaires to migration last year, a 157 per cent increase on 2023 and more than any other country bar China, the Times reported. In fact, the actual number moving out could be even higher as the net figure factors in millionaires who arrive in the country.
The majority of departures have been to other European countries including Italy and Switzerland, as well as the United Arab Emirates (UAE).
Some 78 centi-millionaires and 12 billionaires left the country last year, according to the figures, which were compiled by the global analytics firm New World Wealth.
The data also reveals an acceleration in the exodus since last year’s general election was called, with one dollar millionaires leaving Britain every 45 minutes.
In November, several leading tax and wealth advisors told City PM scrapping the non-dom regime without a suitable replacement was a “monumentally stupid decision.”
An intense lobbying campaign from wealth advisors and representatives for non-dom’s ensued in the run-up to the Autumn Budget, where the policy was announced. Experts warned it would lead to a “tidal wave” of departures.
“We are committed to tax reforms that are progressive and underpinned by fairness,” a Treasury spokesperson said in a statement to the Times.
“It is right that those who can afford to, contribute their fair share to fix the foundations to provide stability and fund public services to drive growth.”