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Subscribe08 JUL 2025 / ECONOMY
A record 16,500 millionaires are projected to leave the UK in 2025, following changes to the non-domicile tax regime and offshore trust exemptions in 2024, according to the Henley Private Wealth Migration Report. The exodus is triggering concerns about the impact on the UK's economy and its global standing in finance, with repercussions predicted for sectors like luxury retail, private education, and philanthropy, and a potential loss of £8.9 billion in non-dom tax contributions.
The rich aren’t just getting richer; they’re getting out. And the UK? It’s watching them go, a suitcase in one hand and offshore trust documents in the other. A record-shattering 16,500 millionaires are forecast to leave Britain in 2025, according to the Henley Private Wealth Migration Report. That’s nearly $92 billion in investable assets walking out the door, the biggest millionaire outflow from any country in modern history. But don’t mistake this as just a tax tantrum, it’s a red flag waving over Britain’s economic future.
For most of this century, London was the playground for the ultra-wealthy. With favorable laws, elite schools, and posh real estate, it was the ultimate basecamp for the global elite. The crown jewel? The non-domiciled (non-dom) tax regime, dating back to 1799, let wealthy foreigners live in the UK without coughing up tax on overseas income unless they brought it into the country. As Peter Mandelson once said, the UK was "intensely relaxed about people getting filthy rich...as long as they pay their taxes."
That all changed in a flash.
Result? Overnight, the UK went from a wealth magnet to a tax minefield.
The millionaire’s migration isn’t just headline hype; it’s happening fast and furious. In 2024, the UK lost 10,800 millionaires to migration -a 157% jump from the year prior. 2025 is already poised to outdo that, with Henley & Partners forecasting 16,500 departures, more than double early projections, and the highest millionaire outflow ever tracked.
And they’re not just wealthy, they’re wealth influencers.
Meanwhile, the trend is visible beyond headlines too. London’s luxury real estate deals dropped 36% year-over-year this May, per LonRes. Companies House data shows over 4,400 directors have left the UK in the past year, with departures accelerating. The FT & Savanta survey found that wealth managers are losing an average of 52 clients per firm, and some firms report losses as high as 300.
Labour’s Treasury hopes to rake in £2.7 billion annually by 2028–29 from the non-dom crackdown. But that assumes only 12–25% of non-doms will leave.
Reality check from Oxford Economics:
What is at stake?
Bottom line? This isn’t just about taxing yachts and castles; it’s about a full-blown economic ecosystem unraveling.
While the UK is tightening the screws, others are rolling out the red carpet.
And let’s not forget Monaco, now home to Checkout.com’s CEO Guillaume Pousaz, and Abu Dhabi, where Bharti Global’s heir Shravin Mittal recently landed. These aren’t just lifestyle moves; they’re strategic tax exits.
Labour’s position is politically golden but economically shaky. The tax crackdown is popular with voters, but it’s hemorrhaging top taxpayers and eroding Britain’s brand among global investors. Whispers from FT suggest Reeves may consider softening the inheritance tax rules on offshore trusts, but she’ll need to spin it as “targeted refinement,” not a full-blown U-turn. And the clock is ticking; many families plan relocations before September’s school year. As Jeremy Savory of Millionaire Migrant puts it, “Londoners are leaving in droves. From stealth taxes to ULEZ charges, the city’s becoming a financial no-fly zone.”
Britain’s millionaire exodus isn’t just about tax avoidance, it’s a flashing red light for the country’s future competitiveness, investor confidence, and global standing. If the outflow of wealthy individuals continues, the UK risks losing its entrepreneurial edge, draining assets from its wealth management sector, and shrinking its influence in global finance just as rivals like the UAE, Italy, and Switzerland step up their regimes. For financial professionals, this shift is seismic, cross-border tax planning, strategic residency advice, and global wealth preservation are no longer niche services but essential components of serving high-net-worth clients in a rapidly changing landscape. Follow MYCPE ONE Insights on LinkedIn for sharp, no-fluff analysis of finance and tax stories that matter.
Until next time…
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