What Is Driving the Flock of Millionaires Exiting the UK

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.

From ‘Filthy Rich’ to ‘Filthy Gone’

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.

• In March 2024, then-Chancellor Jeremy Hunt announced plans to abolish non-dom status.
• By July, Labour’s Rachel Reeves doubled down, ending offshore trust exemptions and slapping a 40% inheritance tax on global assets.

Result? Overnight, the UK went from a wealth magnet to a tax minefield.

High Rollers Hit the Road

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.

• Richard Gnodde (Vice Chair, Goldman Sachs) relocated to Italy.
• Nassef Sawiris (Egypt’s richest man) and John Fredriksen (Norwegian shipping mogul) now call the UAE home.
• Lakshmi Mittal may be next to the bounce.

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.

Why the Exit Hurts More Than It Helps

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:

• 63% of non-doms may leave within two years.
• Even under a 32% exit scenario, the policy could lose the Treasury more than it gains.

What is at stake?

• £8.9 billion in non-dom tax contributions (2022–23).
• Jobs across luxury retail, hospitality, private education, and legal services.
• Philanthropy for UK charities, museums, and hospitals, much of which is driven by HNWIs.

Bottom line? This isn’t just about taxing yachts and castles; it’s about a full-blown economic ecosystem unraveling.

Come Through, Millionaires!

While the UK is tightening the screws, others are rolling out the red carpet.

• Italy: Flat €200K tax on foreign income.
• Switzerland, Portugal, Greece: Friendly tax rules and golden visas.
• UAE: Already gained 9,800 millionaires in 2025 alone, the global leader.

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.

Will They Blink?

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.”

Final Take

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.