Britain’s Billionaire Exodus: Why the UK is Losing its Wealthiest Residents
Introduction
A silent but powerful shift is taking place in the United Kingdom: an exodus of billionaires, millionaires, and high-net-worth individuals (HNWIs) who have long made London their home. Triggered by sweeping tax reforms—most notably the abolition of the non-domicile (non-dom) regime—this movement is reshaping the UK’s economic landscape and casting uncertainty over London’s future as a global financial hub.
The Policy Trigger: End of the Non-Dom Regime
In March 2024, Chancellor Jeremy Hunt, and later Labour Chancellor Rachel Reeves, abolished the long-standing non-dom tax regime. This regime had allowed UK residents who claimed non-dom status to avoid paying UK taxes on foreign income, capital gains, and offshore trusts.
Effective July 2025, any resident living in the UK for more than four years will be subject to full UK taxation on their global income, capital gains, and inheritance. This includes a 45% top income tax rate, up to 24% on capital gains, and a 40% inheritance tax on worldwide assets.
Who Is Leaving?
The list of departures reads like a who’s who of global business:
- John Fredriksen, the Norwegian shipping tycoon, moved his business empire from London to the UAE, criticizing Britain for its deteriorating business environment.
- Lakshmi Mittal, steel magnate and long-time UK resident, is reportedly weighing a shift to Switzerland, Italy, or the UAE.
- Iwan and Manuela Wirth, founders of Hauser & Wirth, relocated to Switzerland.
- Richard Gnodde, vice-chairman of Goldman Sachs International, left for Milan.
- Filippo Gori, JPMorgan’s European head, relocated to New York.
The Numbers: Just How Big Is This?
- According to the Henley & Partners Private Wealth Migration Report, 10,800 millionaires left the UK in 2024, a 157% increase over 2023.
- The UK is projected to lose 16,500 millionaires in 2025, more than any country globally, even China.
- These individuals reportedly hold over £66 billion in investable assets.
Taxation: The Smoking Gun
A landmark study by economists Arun Advani, David Burgherr, and Andy Summers (2025) quantified the effect of the tax policy shift:
- A 19% drop in the net-of-tax rate caused a 6% emigration surge among the UK’s wealthiest residents.
- The estimated elasticity (~0.26) means a 1% increase in effective tax burden leads to a 0.26% increase in emigration.
- The primary driver was the inclusion of global income and assets in the UK tax net, especially inheritance tax on overseas estates.
Push and Pull Factors
- Push: Higher taxes, fear of future fiscal crackdowns, and the political tone toward wealth.
- Pull: Favorable tax regimes in the UAE (0% income tax), Italy (flat €100,000 tax on foreign income), Switzerland (lump sum taxation), and Portugal or Greece (golden visas, low inheritance taxes).
Economic Consequences
- Oxford Economics warns the exodus could result in a net revenue loss of £1 billion annually, due to reduced consumption, investment, and property activity.
- VAT, stamp duty, and even philanthropic donations are likely to decline.
- Critics warn that the UK is risking its status as a wealth magnet.
Political and Public Perception
- While some polls show 81% of millionaires support fair wealth taxation, the ultra-wealthy feel targeted.
- Labour and Treasury are reportedly reconsidering the inheritance tax portion of the non-dom overhaul to prevent further damage.
Skepticism: Is the Panic Overblown?
- Watchdogs like Tax Justice Network argue that the millionaire exodus is overstated: 0.2% to 0.6% of millionaires is not mass migration.
- However, even this small number represents outsized losses in tax, capital, and influence.
Conclusion: A Fork in the Road
The UK faces a paradox: how to tax the ultra-rich fairly while still retaining their investment, influence, and entrepreneurship. If left unaddressed, the flight of capital and talent could signal more than just a fiscal miscalculation—it could mark the decline of London as the financial capital of Europe. Whether the government retools its policies or doubles down on fairness will determine whether this is a temporary reshuffle or a long-term shift in global wealth geography.
Sources: Henley & Partners, Arun Advani (LSE), FT.com, The Times, WSJ, Economic Times, Tax Justice Network