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A rising variety of rich individuals are signalling their intention to relocate from the UK this yr as considerations over tax and pension reforms immediate an exodus.
Wealth managers say many purchasers are making ready to go away, with a median of 52 per agency, starting from single figures to as many as 300, in accordance with the FT and Savanta wealth administration survey 2025.
The UK is projected to lose a file 16,500 excessive internet value people this yr, value almost $92bn in investable belongings, representing an estimated 9 per cent of this group, in accordance with the Henley Non-public Wealth Migration Report 2025.
Of UK millionaires, 26 per cent are both very or considerably more likely to change their tax domicile inside 12 months, reported a syndicate examine by Savanta, the market analysis group.
This determine rises to 29 per cent amongst these holding greater than £5mn in investable belongings — very excessive internet value people — pointing to deepening unease among the many nation’s wealthiest residents, mentioned the Savanta MillVue Q1 2025 survey.
Tax and pension modifications launched by the Labour authorities are the primary concern of the rich as they weigh up the sights of extra fiscally beneficial areas. For a lot of, the choice is as a lot about monetary prudence as way of life choice.
The inclusion of pensions in inheritance tax (IHT), the federal government’s new tax regime together with capital good points and stamp obligation modifications are a few of the elements behind the exodus.
The Labour authorities has additionally determined to close a loophole that allowed non-doms using offshore trusts to keep away from inheritance tax, which implies their worldwide belongings at the moment are uncovered to the tax at 40 per cent underneath guidelines that got here into drive in April.
This has induced many to go away the UK for extra tax-friendly regimes such because the United Arab Emirates, Italy and Switzerland.
Nevertheless, the FT reported final month that UK chancellor Rachel Reeves was exploring a reverse of the non-dom crackdown as a shrinking tax base from the wealthy doubtlessly places strain on public funds.
There’s additionally a threat that the departure of many self-made entrepreneurs may hit innovation and result in a ripple impact that undermines the UK’s prosperity.
For UK wealth managers, the results attain past the lack of belongings underneath administration because the nation’s waning attraction amongst prosperous people makes gaining new purchasers more difficult, each domestically and internationally, notably with growing competitors from world wealth hubs resembling Dubai, Singapore and Switzerland.
The FT & Savanta wealth administration survey 2025 spoke to 23 wealth managers a couple of vary of points from views on the fairness market, regulation, AI, cryptocurrencies and inheritance tax.
The Savanta MillVue Q1 2025 survey interviewed 500 excessive internet value people within the UK.
Elwira Costello is vice-president, world wealth lead at Savanta, the market analysis and advisory firm
