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Britain’s wealthy are leaving in record numbers, driven not just by taxes but by economic uncertainty and a global scramble for capital, forcing the nation to rethink how it attracts and retains wealth, talent, and innovation.
Not so quietly, Britain’s wealthy are fleeing.
The country has long served as a global exemplar: a rare blend of economic astuteness, political stability, and cultural cachet. Wealth flowed in from all quarters, and Britain welcomed it. However, over the last few years, that narrative has unravelled. Wealth is still in motion…but it is now moving out.
According to data from UBS, the United Kingdom (UK) is projected to lose approximately 500,000 millionaires by 2028, shrinking from 3.06 million to 2.54 million. In 2024 alone, an estimated 10,800 high-net-worth individuals (HNWIs) were estimated to have left Britain. This figure is expected to rise to 16,500 in 2025, resulting in the outflow of approximately US$92 billion in investable assets³. These numbers are not just high—they are the highest anywhere in the world for the year. By contrast, China is expected to lose 7,800 HNWIs, while India is expected to lose 3,500.
For decades, the explicit deal in Britain was explained by a simple quid pro quo: the rich could enjoy the privileges of a safe, stable, friendly, globally connected country, and in return, they would contribute to its functioning through a progressive but reasonable tax regime.
These are not just statistics. They represent seismic shifts. To understand this phenomenon, one must look beyond tax policy and toward broader concerns surrounding Britain’s economic outlook, political climate, and its ability to hang onto relevance in a world marked by rapid shifts.
For decades, the explicit deal in Britain was explained by a simple quid pro quo: the rich could enjoy the privileges of a safe, stable, friendly, globally connected country, and in return, they would contribute to its functioning through a progressive but reasonable tax regime. The result was a country that, for all its challenges, retained immense appeal for entrepreneurs, financiers, and foreign investors. That deal is now fraying.
The catalyst is tax - but not tax alone. It is the cumulative effect of economic uncertainty, post-Brexit dislocation, and an increasingly punitive attitude toward wealth. The UK’s additional rate of income tax, at 45 percent, applied to earnings above £125,140, is among the highest in the developed world. However, more worrying than current rates are future expectations. Many HNWIs anticipate even more pain ahead. There are concrete signs of this. The abolition of the non-dom regime, which permitted residents who claimed to be domiciled elsewhere to avoid paying UK tax on their overseas income — once a powerful tool for attracting global capital — has sent shockwaves through the UK’s international elite. Proposals to extend threshold freezes, introduce a 2 percent wealth tax on fortunes over £10 million, or raise capital gains and inheritance taxes have created a climate of confiscatory taxation and uncertainty. Stable capital does not respond well to unpredictability.
The abolition of the non-dom regime, which permitted residents who claimed to be domiciled elsewhere to avoid paying UK tax on their overseas income — once a powerful tool for attracting global capital — has sent shockwaves through the UK’s international elite.
Those leaving Britain are not disappearing. Instead, they are swiftly relocating to jurisdictions that offer stability, security, and clarity. The United Arab Emirates (UAE) stands out as a natural beneficiary with its zero income taxation of HNWIs, an ambitious growth agenda, and a business-friendly culture. Even Saudi Arabia is positioning itself as the next big destination for capital. When the marginal tax rate in Britain is 45 percent, even the desert comes calling. The United States, despite its own complex tax system, remains a bedrock of economic opportunity, especially in innovation hotspots like Austin and Miami. Countries in southern Europe — Italy, Portugal, and Switzerland — are luring investors through attractive residence programmes and tax incentives. Others are moving to Singapore, Canada, and even the Caribbean, where citizenship-by-investment programmes are quietly attracting assets in exchange for economic security. Relatively, Britain is increasingly seen as uncompetitive in this landscape, not just in tax terms, but in its broader economic proposition.
This is not simply a British problem. Globally, governments are grappling with the same challenge: funding expansive public services in an age of rising living costs, slower growth, and increasing debt burdens. Where they differ is the approach taken. Some are looking to incentivise capital: Ireland is committed to low corporate tax; Singapore offers targeted tax breaks to attract family offices; the UAE has a frictionless regulatory environment. Others, like Britain, are leaning toward redistributive models that, while politically easy and appealing, may backfire. The global competition for capital is not just about attracting or retaining wealth. It’s about creating sustainable, reinforcing ecosystems of innovation and investment. When the rich leave, they don’t just take their capital — they take along their businesses, innovations, and philanthropic engines.
The global competition for capital is not just about attracting or retaining wealth. It’s about creating sustainable, reinforcing ecosystems of innovation and investment. When the rich leave, they don’t just take their capital — they take along their businesses, innovations, and philanthropic engines.
A Wiser Way Forward
If Britain plays its cards right, it does not need to choose between fiscal responsibility and global competitiveness. Chancellor Rachel Reeves faces a political dilemma: meeting self-imposed borrowing rules while maintaining current public spending will require £40 billion in extra tax revenue. The easy answer? Hike taxes to win political points. But this approach risks irreparable long-term damage. The trick is to resist falling for short-term, populist solutions in favour of longer-term strategic thinking. What could Britain do instead?
Britain has a choice to make, for the current climate forces the wealthy to evacuate. It can continue down its current path — characterised by uncertainty, skyrocketing punitive tax burdens, and a shrinking wealth base. Or it can reimagine itself as an open and competitive economy. To do that, it must stop treating wealth as a liability and begin treating it as a resource to be nurtured. The best countries in the world are not those with the highest taxes. They are those with smart taxation, strong institutions, and strategic thought.
Qaiser Shamim is a distinguished expert in fiscal policy, trade relations and corporate governance.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
With over four decades at the forefront of public service and international corporate strategic advisory, Mr. Shamim is a distinguished expert in fiscal policy, trade ...
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