The United Kingdom is currently facing a concerning trend where a record number of millionaires are expected to leave the country. The reasons behind this exodus are complex, with various factors contributing to the phenomenon. Research indicates that the upcoming general election is expected to further exacerbate the departure of high-net-worth individuals from the UK.
The Henley Private Wealth Migration Report highlights that Britain is projected to experience a net loss of 9,500 millionaires in 2024, which is more than double the figure recorded in the previous year. This marks a stark turnaround for the UK, once considered a prime location for the world’s super-rich. The report indicates that the exodus of millionaires began around a decade ago, with fewer wealthy individuals coming into the country. This trend is particularly concerning as the UK has historically been a magnet for wealthy families relocating from Europe, Africa, Asia, and the Middle East.
The Institute for Government think tank’s CEO, Hannah White, suggests that the millionaire exodus could be accelerated by the upcoming general election. Recent polls show the left-of-center Labour Party in a strong position, with policies that could impact the wealthy. Labour’s manifesto includes plans to target tax loopholes benefiting high-net-worth individuals, reduce tax avoidance, and raise taxes on property purchases by non-UK residents. These policy decisions, coupled with the existing economic and political context, are causing high-net-worth individuals to reconsider their presence in the UK.
The policy decisions proposed by various political parties in the UK are creating uncertainty among the wealthy. The Conservative government’s adoption of Labour’s policy to end the non-dom tax regime from 2025 has raised concerns among high-net-worth individuals. Additionally, Labour’s commitment to removing VAT exemptions for private schools further adds to the unease. These policy changes could have significant implications for millionaires residing in the UK, leading to a faster outflow of wealth.
The decline in the number of millionaires in the UK stands in stark contrast to other major economies in Europe and beyond. While the UK has seen an 8% decrease in the number of high-net-worth individuals over the past decade, countries like Germany have experienced a 15% increase, and the US has seen a staggering 62% jump. This divergence in trends raises questions about the UK’s attractiveness to the wealthy and its ability to retain affluent individuals within its borders.
The exodus of millionaires from the UK is a multifaceted issue influenced by political, economic, and policy-related factors. The upcoming general election and the policies proposed by different parties play a crucial role in shaping the decision of high-net-worth individuals to stay or leave. The UK’s ability to address the concerns of the wealthy and create a conducive environment for wealth creation will determine its attractiveness to millionaires in the future.
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