Millionaires leaving the UK in huge numbers
One Millionaire Departs Britain Every 45 Minutes Under Labour Government
Dramatic 157% Surge in Wealth Exodus During Sir Keir Starmer’s First Year in Power
Fresh data suggests that Britain witnessed the departure of one millionaire every 45 minutes during Labour’s inaugural year in power, marking an unprecedented exodus of wealthy individuals from the United Kingdom.
According to newly released figures, a staggering 10,800 millionaires relocated from British shores to overseas destinations last year, representing more than twice the number recorded in 2023. This translates to approximately 30 high-net-worth individuals departing daily, or roughly one every three-quarters of an hour.
This significant wealth migration coincides with Labour’s proposals to dismantle centuries-old tax legislation that has historically permitted foreign investors to maintain residence in Britain whilst protecting their offshore wealth from domestic taxation.
Jason Hollands, managing director at the prestigious financial advisory firm Evelyn Partners, expressed serious concerns about the crackdown, suggesting it portrays Britain as “hostile to wealthy people”. He elaborated, “The signal it sends to people is that the country has a hostile attitude to wealthy people who will bring money into the UK. These individuals are highly mobile, and with the proliferation of digital enterprises, one can now operate from numerous locations without necessarily requiring a physical presence in this jurisdiction.”
Analytics firm New World Wealth, in collaboration with advisory specialists Henley & Partners, revealed that the number of high-net-worth individuals—defined as those possessing liquid assets exceeding £821,153 ($1 million)—departing the country witnessed a dramatic 157% increase in 2024. Their comprehensive analysis showed that upwards of 10,000 millionaires relocated abroad last year, a marked increase from the previous year’s figure of 4,300.
This mass departure coincided with Rishi Sunak’s calling of a snap election, which culminated in Labour securing a decisive victory. The data indicates that, throughout 2024, only China experienced a greater degree of capital flight than the United Kingdom.
Several nations have emerged as preferred destinations for these departing wealthy individuals. Italy, which introduced an attractive flat-tax scheme for non-domiciled residents in 2017, has become particularly popular. Other favoured destinations include Switzerland, the United Arab Emirates, the United States, and Singapore.
The exodus has not been limited to millionaires alone. New World Wealth’s detailed analysis revealed that 78 centi-millionaires—individuals possessing assets worth £100 million—and 12 billionaires chose to leave the country during this period.
Notable departures include prominent business figures such as Charlie Mullins, founder of Pimlico Plumbers, and Christian Angermayer, the German technology entrepreneur, who opted to relocate to Switzerland last year.
Labour’s proposed reforms target the scaling back of tax regulations that currently allow wealthy individuals to reside in the UK without incurring tax liability on overseas income and gains. According to His Majesty’s Revenue and Customs (HMRC) statistics from 2023, approximately 74,000 non-domiciled individuals were resident in Britain, with 37,800 having maintained UK residence for at least seven years, each paying an annual fee of £30,000 to protect their offshore wealth from domestic taxation.
A new taxation regime, initially conceived by former Chancellor Jeremy Hunt and subsequently maintained by the Labour government, will take effect this April. Under these revised regulations, new non-domiciled residents arriving in Britain will be granted a four-year period during which their foreign wealth remains exempt from domestic taxation. Following this period, they will be required to contribute at the same rate as ordinary British taxpayers.
For existing non-domiciled residents, a two-year transition period to the new scheme has been established. Additionally, foreign earnings will become subject to inheritance tax considerations.
The Office for Budget Responsibility projects that this tax reform will generate approximately £2.5 billion annually over the next five years. However, research conducted by the Adam Smith Institute in October suggested more sobering implications. Their analysis indicated that the abolition of non-domiciled tax status could result in the elimination of 23,000 jobs over the next six years through reduced investment and consumption.
The Institute’s projections suggest this could cost the British economy £600 million annually in lost GDP by 2030, escalating to £1.3 billion per year by 2035—representing a cumulative loss of £6.52 billion over the coming decade.
David Hawkins, representing Foreign Investors for Britain, a coalition of non-domiciled individuals, described the Government’s policy to The Times as “a monumental act of national self-harm”. He further elaborated, “It appears that decisions have been made not based on the evidence but based on ideology. It’s a genuine concern as increasing numbers of people choose to leave. This exodus impacts businesses, employment opportunities, investment, economic spending, tax revenue, and philanthropic contributions.”
The implications of this wealth migration extend beyond mere financial considerations, potentially affecting various sectors of the British economy, from luxury real estate to high-end services, and could influence future foreign investment decisions regarding the United Kingdom.
Summary
* The UK experienced an unprecedented exodus of wealthy individuals in 2024, with one millionaire leaving every 45 minutes (approximately 30 per day), totaling 10,800 millionaires for the year.
* The departure rate increased dramatically by 157% compared to 2023, when only 4,300 millionaires left the country. This coincided with Labour coming to power following a snap election.
* Among those departing were 78 centi-millionaires (individuals with assets over £100 million) and 12 billionaires. Notable departures included Pimlico Plumbers founder Charlie Mullins and German tech entrepreneur Christian Angermayer.
* The exodus appears linked to Labour’s plans to reform non-dom tax laws, which currently allow wealthy foreign residents to shelter offshore wealth from UK taxes. There are approximately 74,000 non-doms in the UK, with 37,800 having lived there for at least seven years.
* Under the new tax regime starting in April, new non-doms will only have four years of tax shelter on foreign wealth, after which they must pay standard UK taxes. Existing non-doms will have a two-year transition period.
* Popular destinations for these wealthy emigrants include Italy (which offers an attractive flat tax rate), Switzerland, UAE, USA, and Singapore. The UK’s capital flight was second only to China during this period.
* The Adam Smith Institute projects significant economic impact from these changes, including:
– Loss of 23,000 jobs over six years
– £600 million annual GDP loss by 2030
– £1.3 billion annual GDP loss by 2035
– Cumulative loss of £6.52 billion over the next decade
* While the tax reforms are expected to generate £2.5 billion annually for the next five years, critics argue this may be offset by the broader economic impact of wealthy individuals leaving the country.