Higher taxes under the Labour government may be the cause of a wealth exodus, according to research
As taxes rise, more affluent people are leaving the UK.
In October, Chancellor Rachel Reeves announced her first Autumn Budget, which included 40 billion in tax increases.
The previous Tory government's income tax threshold freezes were kept in place, employer national insurance was increased, and capital gains tax was raised to 18 percent for basic rate taxpayers and 24 percent for higher earners.
In addition, starting in April 2027, pensions will be considered part of an estate for inheritance tax purposes, and landlords and buyers of second homes will now be required to pay an additional 5% stamp duty instead of the previous 3%.
Meanwhile, given worries about US President Donald Trump's trade tariffs, inflation and interest rates are also predicted to stay higher in the UK for an extended period of time.
Rich households are thinking about new shores because of these additional expenses.
According to a survey conducted by immigration investment adviser Astons, 10% of high net worth individuals (HNWIs) intend to relocate outside of the UK in order to obtain citizenship or residency in another nation.
The majority, 72 percent, intend to depart within the next five years, while only 8 percent plan to depart within the next 12 months.
Higher taxes have also led 21% of respondents to contemplate severing ties with the UK, according to a recent survey by tax advisor Cornerstone, which cautions that doing so could result in "significant losses" totaling billions of pounds in lost investment assets, business revenue, and property revenue.
"Our data shows a clear issue that the new Labour government and the Autumn Budget are causing serious concerns among Brits," says Cornerstone Tax group chair David Hannah.
"For many Brits, these are not merely passing thoughts; they are sincere plans to look for better circumstances abroad. "As a result of this circumstance, many people feel stuck in a difficult market and are looking for better options abroad.
Other studies also support this.
According to a Currencies Direct analysis, the cost of living in the UK is the reason why 39% more British are thinking about relocating abroad.
Canaccord Wealth reported that a 56 percent increase in the number of affluent people thinking about transferring their assets to jurisdictions with lower tax rates, like the Isle of Man and the Channel Islands, has been observed.
Since the autumn budget, there has been a discernible migration of wealth and wealth creators, according to Dariusz Karpowicz, director of Albion Financial Advice.
"We've had a ton of calls from clients looking for better and significantly less taxed opportunities," he says.
"Many of our wealthy clients are acting as if they are voting with their feet, considering relocation as their own kind of fiscal policy, even though the Treasury may see it as a necessary remedy for public finances. Many people appear to have needed the last push to begin looking into their options overseas because our current tax burden is higher than it was before the war.
Where are affluent British people moving?
Henley and Partners, a migration consulting firm, warned that even under the Tory government, record numbers of millionaires were leaving the UK prior to the general election because of frozen tax thresholds and declining dividend and capital gains allowances.
The USA, Singapore, and the United Arab Emirates were its most visited destinations.
Popular destinations include places with low income tax rates, like Singapore, or places with no income tax, like Dubai.
According to Karpowicz, people who would rather stay closer to home are also showing a great deal of interest in Portugal's "golden visa" program, which grants residency to non-EU nationals who transfer at least 1.5 million to the nation.
"The timing is particularly telling, as this isn't just the usual end-of-year planning: it's a direct response to the UK's tax burden reaching historic highs," he says.
According to David Robinson, co-founder of Wildcat Law, more pensioners are choosing to retire overseas.
"Ireland remains an appealing destination for individuals who want to remain near the United Kingdom," he says. Speaking English and having easy access to the UK appeal to many people. Those who are willing to relocate farther away find the Caribbean to be especially alluring.
"The majority of wealthy people can choose from a variety of options with different tax regimes. Pensioners from middle-class Britain have been migrating to Greece in greater numbers since the Budget. Given the elimination of winter fuel allowances, a more favorable tax regime, a lower cost of living, and a better climate are all attracting British pensioners.
The dangers of moving.
To avoid the UK tax system, it's not always as simple as packing your bags and heading out.
You might have to deal with a new language and cultural challenges.
If you intend to leave, you might need to move quickly because many nations that offer so-called Golden Visas have been reducing or discontinuing their programs.
There are several nations that are far more alluring to HNWIs than the UK at the moment, according to Alena Lesina, citizenship, residency permit, and real estate investment specialist for Astons. In Greece, for instance, where UK expats can obtain a five-year renewable residency for the entire family with a minimum investment of 250,000 in Greek real estate, we are witnessing a significant increase in interest.
In 2025, UK HNWIs may have their final chance to take advantage of this fantastic opportunity in the Mediterranean at such a low cost, as there are rumors that Greece, like Spain, is about to end its Golden Visa program.
However, leaving the country may not release you from your tax obligations.
If you are not a resident, you may still have to sell your property and pay the higher CGT rates if you wish to relocate because you can still be taxed on income earned in the UK, such as from a rental property.
Unless there is a double taxation treaty with the country you have relocated to, pension withdrawals may also be taxable in the UK.
If you give up your UK residency, you can still keep your ISAs, but you won't be able to make any more contributions, which could have an impact on your savings as well.
Even if you had lived in the UK for ten years before leaving, inheritance tax may still be assessed on your estate for up to ten years after you depart.
Your length of stay in the UK may also play a role; if you visit the country for more than 90 days during a full tax year, HMRC may still wish to charge you taxes.
Moving to a certain country to retire overseas may also result in your state pension not being increased by the triple lock.
Notwithstanding the dangers, Henley & Partners' analysis indicates that the UK saw an unprecedented net loss of 9,500 millionaires in 2024, more than doubling the 4,200 who left the country the previous year and ranking second only to China globally.
Henley & Partners' group head of private clients, Dominic Volek, stated: "This massive migration of millionaires is a leading indicator in many ways, indicating a significant change in the global landscape and the tectonic plates of wealth and power, with significant ramifications for the future course of the countries they leave behind or those they settle in.
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