Number of millionaires leaving UK due to tax changes under Labor condemned as 'monumental act of national self-harm'

The UK is currently seeing record numbers of millionaires leaving the country, with one wealthy individual leaving the country every 45 minutes since Labor takes power in the summer of 2024.

The UK lost a total of 10,800 millionaires in 2024, representing an unprecedented exodus of high-net-worth individuals.

According to data from global research firm New World Wealth, many of these millionaires are migrating to European countries such as the United Arab Emirates, as well as countries such as Italy and Switzerland.

The outflow of wealthy individuals has increased since Labor's election victory, with many UK-based entrepreneurs preparing to leave.

A key factor in this migration is Labour's plan to abolish the non-resident (non-dom) tax system, which will come into effect in April 2025. Under the current system, nondoms can avoid UK tax on their income and assets. Outside the country.

David Hawkins of Foreign Investors for Britain, a group representing non-domes, described the government's policy as a monumental act of national self-harm.

“It appears that the decision was made based on ideology rather than evidence,” he said. I'm really worried because more and more people are leaving. And businesses, jobs, investment, spending, tax collections and philanthropy in the economy have taken a hit.

The current system allows non-doms to avoid UK tax on income and assets earned abroad.

PA/Getty

The planned reforms will replace this system with a residence-based tax structure, including UK inheritance tax on overseas assets.

A survey of 700 non-doms by Oxford Economics found that almost two-thirds of them are considering leaving the UK due to planned tax changes.

The Office for Budget Responsibility (OBR) estimates that between 12 and 25 per cent of the 70,000 non-doms in the UK will leave the country once the new rules come into effect.

While Prime Minister Rachel Reeves expects the reforms will raise $13 billion over five years, Oxford Economics warns that the losses for wealthy taxpayers could actually cost the UK government $1 billion a year.

Charlie Mullins, founder of Pimlico Plumbers, who moved to Spain, shared concerns about the situation, saying the UK was facing serious economic challenges.

He said: “Britain is in trouble. I don't blame Labor entirely. The Conservatives have lost the plot too, but Labor have made things worse. They have increased taxes and added new employment laws such as daytime contracts.” He said. One, it becomes difficult to run a business.”

The comments come as tax advisers report a growing number of entrepreneurs are preparing to leave following the tax rises announced in Rachel Reeves' autumn budget.

The scale of wealth flight increased by 157% compared to 2023, when 4,200 millionaires left the country. Only China lost more wealthy residents during this period, according to an analysis by New World Wealth.

This marks a significant change for the UK, which has long been one of the world's top destinations for millionaires, particularly from mainland Europe, Africa, Asia and the Middle East.

Among those leaving the UK are 78 millionaires (worth more than $100 million) and 12 billionaires. Popular destinations for these wealthy individuals include cities such as Paris, Dubai, Amsterdam, Monaco, Geneva, Sydney, and Singapore.

Additionally, regions such as Florida, Portugal's Algarve, Malta and the Italian Riviera have become attractive retirement locations for British immigrants.

Several factors are contributing to this wave of exodus. Along with the tax changes, there are concerns about the declining importance of the London Stock Exchange and what analysts describe as the deteriorating state of the UK's healthcare system.

How can Labor be forced to raise taxes on the rich?

Moreover, Britain's traditional advantage as an English-speaking country has diminished as the attractiveness of other English-speaking countries has grown.

Foreign Investors for Britain, the body representing international investors in the UK, criticized the planned changes to the non-dom tax system.

Last November, wealth advisers warned that abolishing the Bedom government without a suitable replacement would be a “monumentally foolish decision”.

A Treasury spokesperson said: “We are committed to tax reform that is progressive and supports fairness. It is important for those who can afford it to contribute their fair share to fix the foundations for funding public services to provide stability and promote growth. “That’s right,” he said.

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