Britain is on course to lose more millionaires than any other country in the word this year as the wealth exodus picks up pace, it was claimed today.
The annual Wealth Migration Report from Henley & Partners, a firm that advises affluent clients considering relocating, said high tax rates, particularly the abolition of the non dom regime, combined with sluggish economic growth were the biggest factors driving rich people away.
Henley & Partners estimate that 16,500 dollar millionaires – many from London – will quit the UK this year, putting it at the head of the global league table for the first time.
That is more than double the 7,800 forecast to leave second-placed China, which previously topped the leader board for a decade.
Last year鈥檚 study estimated the UK would lose 9,500 people with at least $1 million in investable wealth in 2024.
The United Arab Emirates is expected to see the biggest influx of millionaires with 9,800 overall in 2025, followed by the USA and Italy with 7,500 and 3,600 respectively.
Henley & Partners chief executive Dr Juerg Steffen said:鈥淔or the first time in a decade of tracking, a European country leads the world in millionaire outflows.
鈥淭his isn鈥檛 just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere. The long-term implications for Europe and the UK鈥檚 economic competitiveness and investment appeal are significant.鈥
The outflow accelerated last year when Rachel Reeves confirmed the abolition of non dom regime that allowed wealthy foreigners to live in the UK without having to pay tax on their overseas income and assets.
There was particular alarm that some overseas assets would become liable for Britain鈥檚 40% inheritance tax (IHT) for the first time.
The Treasury is now reportedly looking at a possible U-turn on some of the more punitive aspects of the policy, including a reversal over IHT in order to stem the flow.
Reform Party leader Nigel Farage has also unveiled this week his own suggested scheme under which wealthy foreigner would be charged 拢250,000 for the right to be tax resident in the UK for a decade without their foreign assets being subject to UK tax.
Proceeds would be paid directly into the bank accounts of the 2.5m lowest-paid working British people.