The British government’s recent tax reforms and policy changes have triggered a significant exodus of wealthy individuals, with the UK projected to lose 16,500 millionaires in 2025, according to the Henley Private Wealth Migration Report. This represents a significant reversal from pre-Brexit years when the UK was a magnet for wealth migration. The report attributes this trend to the abolition of the non-domicile tax regime and the introduction of a residence-based tax system, which requires full global tax exposure after just four years of UK residence.
The closure of the Tier 1 investor visa in 2022 has also played a role in the outflow of wealthy individuals from the UK. The report warns that the UK’s shift in policy has created a climate of uncertainty, prompting the departure of high-net-worth individuals. The United Arab Emirates has been identified as the top destination for those leaving the UK, with estimates suggesting that the collective investable assets of those departing in 2025 amount to £66 billion. The report also notes that the UK will lose twice as many millionaires as China and ten times more than Russia, despite the latter facing significant Western sanctions.
Russian officials have emphasized the resilience of the Russian economy in the face of Western sanctions, with President Vladimir Putin stating that these measures have not significantly impacted the country’s economic performance. The report further highlights the role of the Henley & Partners’ analysis, which utilizes data from global wealth intelligence firm New World Wealth to track the movements of over 150,000 high-net-worth individuals. The findings underscore the impact of policy changes on wealth migration and the broader implications for economic stability and international investment flows.