A RECORD number of millionaires have left the country since Labour took office, with concerns mounting over the party’s tax policies.
A study by New World Wealth and Henley & Partners revealed that Britain lost a net 10,800 millionaires in 2024, marking a 157 per cent rise from the previous year.
This figure, which excludes incoming millionaires, is second only to China’s outflows globally, The Times reported.
Many of these wealthy individuals relocated to countries such as Italy, Switzerland, and the UAE, with 78 centi-millionaires and 12 billionaires among them.
The exodus accelerated after Labour announced plans to abolish the non-domiciled tax regime.
From April, the reforms will replace the current system with a residence-based framework, extending UK inheritance tax to non-doms’ overseas assets.
The Treasury expects the changes to generate £2.5 billion annually over five years. However, Oxford Economics estimates the reforms could cost the economy nearly £1 bn annually due to reduced tax revenues and the broader impact on the economy.
A survey by Oxford Economics found nearly two-thirds of non-doms or their advisers are considering leaving the UK. On average, each non-dom contributed £800,000 in VAT last year, £890,000 in stamp duty over five years, and invested £118 million in the UK, the newspaper reported.
Foreign Investors for Britain has criticised the government’s policy. David Hawkins, a representative of the group, called it “a monumental act of national self-harm,” citing its potential to deter businesses, jobs, and philanthropy, The Times reported.
Tax experts have reported a surge in inquiries from British entrepreneurs considering relocation since the budget announcement.
Henley & Partners reported a 57 per cent increase in applications for alternative citizenship in 2024 compared to the previous year.
Entrepreneurs like Charlie Mullins and real estate investor Asif Aziz have already moved abroad. Calls for a tiered tax system to attract wealthy investors have been proposed as a compromise.
Treasury officials maintain that the reforms aim to ensure fairness and stability.
