Its Not Just In India. The UK’s Millionaire Exodus, From London To Lisbon, The Flight Of Britain’s Millionaires In 2024-25

The great millionaire exodus, why 10,800 wealthy individuals left the UK in 2024 and the trend seems to be extending well into 2025?

In a shift that’s caught global attention, the UK witnessed an unprecedented exodus of its wealthiest citizens in 2024, with one millionaire leaving the country every 45 minutes.

According to the Henley Wealth Migration Dashboard, compiled by Henley & Partners in collaboration with New World Wealth, a staggering 10,800 high-net-worth individuals (HNWIs) exited the UK in 2024 alone. That’s a 157% increase from the previous year and ranks the UK just behind China in terms of millionaire outflow.

So, what’s driving Britain’s wealthiest to pack their bags?

The finger is being pointed squarely at the Labour Party’s budget overhaul, particularly the scrapping of the centuries-old non-domiciled tax regime. The changes have made the UK far less attractive for the wealthy to park their capital and assets.

But it’s not just millionaires. The exodus also includes 78 centi-millionaires (those with over $100 million in assets) and 12 billionaires, a pretty serious brain and capital drain.

Where are they going?

The primary relocation hotspots include EU nations such as Italy, Malta, Switzerland, Portugal, and Cyprus. Beyond Europe, the United States, UAE, Australia, and New Zealand have also become top choices. Some are even looking at Canada, Singapore, the Caribbean (especially the Cayman Islands), and emerging markets like South Africa and Thailand.

According to Peter Ferrigno, Group Tax Director at Henley & Partners London, Brexit’s aftermath is still playing out in migration patterns. British nationals now need visas to live in the EU – something that didn’t exist pre-2020. That, combined with stricter tax policies, has made many wealthy individuals take the leap and invest large sums – often six or seven figures – to gain residency elsewhere.

Interestingly, Ferrigno also spotlighted the irony – while the UK offers somewhat generous inbound tax rules for the first four years, the lack of a proper investment migration route is pushing even wealthy Americans – who might have considered the UK, to look elsewhere.

Beyond Just Tax Concerns

It’s not just about the money. A survey revealed that 42% of individuals holding UK financial assets are actively seeking to move their wealth to more tax-friendly regions. But other issues have crept in – lingering effects of COVID-19, growing political instability, geopolitical tensions, climate anxiety, and a noticeable spike in crime – particularly phone and watch thefts in London – are all adding fuel to the fire.

There’s a sense that wealthy Britons are growing more and more detached from the country they once called home. As Ferrigno puts it, owning multiple homes is now as essential as being “multi-banked.”

The Budget That Sparked It All

Chancellor Rachel Reeves’ October 2024 Budget has been cited as the tipping point. The government introduced several tax changes that didn’t sit well with the wealthy:

—Capital gains tax was increased from 10% to 18% (basic rate) and from 20% to 24% (higher rate).

—National Insurance rose from 13.8% to 15% on salaries above £5,000 (down from the earlier threshold of £9,100).

At the Confederation of British Industry (CBI) conference, Reeves defended the measures, challenging critics to offer alternatives to plug what Labour describes as a £22 billion fiscal hole.

According to reports, some high-profile names are already leading the millionaire migration from the UK. Pimlico Plumbers founder Charlie Mullins has moved to Spain, openly stating that “Britain is in trouble,” blaming rising taxes and new employment laws that he says are making it harder to do business.

Christian Angermayer, a German tech entrepreneur, has opted for Switzerland. Meanwhile, British hedge fund billionaire Alan Howard is also reportedly eyeing Geneva. Aston Villa owner Nassef Sawiris is exploring a move to the Middle East, and real estate mogul Asif Aziz has already settled in Abu Dhabi.

One of the biggest concerns among the wealthy is the end of the centuries-old non-dom tax regime. Under the old system, about 74,000 non-domiciled individuals – including 37,800 long-term UK residents, could pay a flat £30,000 annually to shield their offshore income from UK taxes. That’s all changing now, and it’s not sitting well with Britain’s high earners.

An Oxford Economics survey shows just how serious this shift is – nearly two-thirds of UK non-doms are considering leaving, mainly because of new inheritance tax obligations on their global assets. Many see this as more than a tax issue – it’s a signal that Britain is losing its grip as a global wealth hub.

Once considered the crown jewel of the wealth world from the 1950s to early 2000s, London’s appeal has faded. English-speaking markets are no longer the rare advantage they once were, as other global economies catch up and even outshine in areas like innovation, mobility, and tax competitiveness.

But the impact of this shift goes far beyond individuals’ bank balances.

According to the Office for Budget Responsibility, non-doms have been contributing significantly to the UK’s public finances – £800,000 in VAT annually and £890,000 in stamp duty over five years. Oxford Economics further estimates that each of their surveyed non-doms invested an average of £118 million since arriving in the UK and have donated £5.9 million to charities.

Critics call the government’s move an “ideology-based decision” that amounts to national self-harm. The ripple effect could touch businesses, jobs, investment, spending, taxes, and even philanthropy.

The Adam Smith Institute predicts the non-dom reforms could shrink the UK economy by £1.3 billion per year over the next decade and result in the loss of more than 23,000 jobs by 2030 due to lost investment. And Oxford Economics warns that the reforms could cost the Exchequer nearly £1 billion annually, before accounting for lost VAT and other tax revenues.

Despite the alarm bells, the Treasury stands firm, insisting the new measures are part of a broader commitment to progressive, fairness-based reforms. The government claims the non-dom changes will bring in £33.8 billion over five years, which they plan to channel into public investment and raising living standards.

Still, the mood in the business community is uneasy, and with recession clouds gathering in the US after Trump’s tariffs fallout, the UK might be in for a bumpy ride and the millionaire exodus might just have started!