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The United Kingdom is witnessing significant migration of high-net-worth individuals (HNWIs). Forecasts for 2024 suggest that around 9,500 millionaires will leave the UK — one of the highest outflows globally, second only to China.

This mass millionaire exodus is not merely a trend among the ultra-wealthy but a shift with profound implications for the UK’s economy, luxury markets, and reputation as a global financial centre. At De Pointe Research, we believe understanding these dynamics is critical for anyone involved in wealth management, alternative investments, or broader economic forecasting.

What’s Driving the Wealthy Away?
1. Sweeping Tax Reforms

At the heart of the millionaire exodus lies the UK government’s aggressive reform of tax policies. In particular:

  • Abolishing the non-domiciled (non-dom) tax status removes a significant incentive for wealthy foreigners to base themselves in Britain. Previously, non-doms could legally shield their overseas income and assets from UK taxation.
  • The changes mean worldwide income and foreign trusts are now fully taxable.
  • Capital Gains Tax (CGT) has also been revised upward to 18% and 24%, depending on income levels.
  • Inheritance tax breaks for foreign trusts have been withdrawn, exposing more global wealth to future UK tax liabilities.

For many, these changes tipped the balance, especially compared to more tax-friendly jurisdictions offering stability and incentives (The Times).

2. Economic and Political Uncertainty

Beyond taxation, the broader economic climate is contributing:

  • Persistent inflation and high interest rates have eroded confidence in the UK economy.
  • Political instability, exacerbated by the aftermath of Brexit, leadership changes, and uncertainty around future regulation, has fueled concerns about the country’s long-term competitiveness.
  • The UK’s declining attractiveness compared to hubs like Dubai, Singapore, Monaco, and parts of Southern Europe (notably Italy and Greece) is accelerating decisions to relocate (Financial Times).

In a globalised world, mobility is an option for many wealthy families and entrepreneurs. Increasingly, they are exercising that option.

 

Where Are the Millionaires Going?

The millionaire exodus isn’t random; it is strategic.

  • Dubai (UAE) tops the list, offering zero income tax, modern infrastructure, and a high-quality lifestyle.
  • Italy’s flat-tax regime — a €100,000 annual charge on foreign income — has made it especially attractive for retirees and business owners.
  • Portugal and Greece offer “golden visa” schemes with residency rights linked to property investment.
  • Monaco, with its combination of prestige, safety, and no personal income tax, remains a top choice for ultra-high-net-worth individuals.

Each of these destinations offers more favourable tax treatment and a stable environment for wealth preservation and international business operations.

The Economic Fallout for Britain

The departure of HNWIs isn’t just symbolic — it carries measurable consequences.

1. Tax Revenue Shortfalls

In 2023-24, capital gains tax receipts fell by more than £1 billion, an approximately 10% decline (The Times).

A large part of this can be attributed to:

  • Fewer taxable asset sales.
  • A diminished base of wealthy taxpayers who historically paid a disproportionate share of the UK’s tax revenues.

When wealthy individuals leave, the country loses their future taxes and the compounded effect of their investments, donations, and entrepreneurial activities.

2. Impact on the Luxury Sector

Luxury markets — particularly prime central London real estate, fine art, jewellery, and luxury vehicles — are seeing declining demand:

  • Prime property sales in central London have dipped, with agents citing reduced buyer appetite from both international and domestic HNWIs.
  • Luxury retailers and service providers — from bespoke tailors to yacht brokers — are feeling the pinch of falling discretionary spending among the wealthy (The Times).

The luxury sector, often a bellwether for broader high-end economic activity, risks contraction unless new wealthy demographics fill the gap.

3. Brain Drain and Innovation Stagnation

Beyond monetary losses, the UK risks a brain drain:

  • Many millionaires are not just passive holders of wealth — they are entrepreneurs, investors, innovators, and philanthropists.
  • Their departure means fewer startups, fewer venture investments, and a potential decline in Britain’s status as a hub for global innovation.

If this trend accelerates, it could have a chilling effect on sectors like fintech, biotech, and even the creative industries, all of which have flourished thanks partly to HNWIs’ ecosystem investments.

What Lies Ahead?

To stem the tide, the UK government will need to:

  • Rethink its tax strategy to balance fairness with competitiveness.
  • Simplify immigration rules to attract wealthy global citizens and entrepreneurs.
  • Foster economic stability to make the UK a more predictable environment for long-term investment.

Otherwise, Britain risks becoming less of a magnet for the world’s wealthy — and more of a country exporting its entrepreneurial elite.

At De Pointe Research, we advise clients to stay informed of these macro trends. Understanding the movement of capital and human talent is critical to protecting and growing wealth across generations in a shifting landscape.

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