16,500 millionaires to leave UK in 2025 as tax crackdown bites

The U.K., particularly London, has been a popular destination for the world’s super-rich for living, working, and creating fortunes.

But things have changed a lot now. Overnight, the UK’s status as a desirable destination for the world’s wealthiest individuals transformed it into one of the most expensive places to live.

The UK is forecast to lose a staggering 16,500 millionaires in 2025, more than double the anticipated number, according to the Henley Private Wealth Migration Report 2025. The UK exodus of 2025 is considered to be one of ‘the largest net outflow’ from any country in several decades.

The introduction of the Non-Dom tax is believed to be the biggest reason for millionaires to take the exit door from the UK.

UK nationals who held their domicile (permanent residence) outside of the country were exempt from paying UK tax on overseas income before April 6, 2025.

Previously, non-domicile UK residents paid tax on their UK income and gains in the same way as other UK residents, but they only paid tax on their foreign income and gains (FIG) when they were remitted to the UK.

This preferential tax treatment based on domicile status was removed for all new FIGs that arise from 6 April 2025.

The other most striking cause for UK millionaires to leave Britain has been the Labour government’s tax rises, which have directly resulted in a considerable loss for wealthy taxpayers in the UK.

Chancellor Rachel Reeves’ budget penalized wealthy UK foreigners by eliminating provisions protecting overseas earnings and estates from British inheritance, income, and capital-gains taxes.

The old tax regime allowed wealthy foreigners to pay £30,000-£60,000 annually to shelter non-British assets and earnings. Now, those staying in the UK for five years pay a top income tax rate of 45% and a top capital-gains rate of 24%.

The UK imposes a 40% inheritance tax on global assets of UK residents who have been residents for at least 10 of the past 20 tax years.

Jeremy Savory, founder of Millionaire Migrant and advisor to over 11,000 global clients, says the trend is only intensifying, “Londoners are leaving the capital in greater numbers due to a panoply of stealth taxes. From the high rental costs to the 40% tax rate, they’re deserting in droves. Council taxes, road taxes, property taxes, Ultra Low Emission Zone charges—everything adds up and it detracts from the appeal of living in London.”

The UK’s loss benefits Switzerland, Italy, Portugal, and Greece, which have seen a surge in millionaires due to favorable tax regimes, lifestyle appeal, and active investment migration programs.

“European digital nomad and residency programmes tied with tax-friendly, lower-cost living in the likes of Greece, Italy, Portugal, and Spain are the beneficiaries. If they have a family, they are tempted to raise their children in a safer environment than a city battling against knife crime, especially now that private schools charge VAT,” adds Savory.

There are other factors too that are fueling the exodus of the UK millionaire population, especially from London. Industry experts believe that many people are leaving because rent consumes more than half of their income, making it difficult to remain in the UK. Families and skilled employees can no longer afford to live near their workplaces.

In addition, London has the highest unemployment rate in the United Kingdom. London has the highest unemployment rate in the UK, with 6.1% of adults unemployed, surpassing the UK average of 4.4%, according to recent Office for National Statistics data.

Temporary housing solutions are causing financial burdens for local municipalities and companies, as necessities become increasingly unaffordable, making it challenging to recruit and retain employees.

“London is pushing people out. With housing unaffordable, transport underfunded, and stealth taxes piling up, business leaders are sounding the alarm—and high earners are quietly packing their bags,” says Savory.

According to Henley & Partners, at least 9,800 millionaires are projected to move to the UAE in 2025 alone.

Several well-known millionaires from all over the world have moved to the United Arab Emirates, including shipping magnate John Fredriksen, who stated that one of the main reasons he moved was the British government’s intention to do away with the long-standing ‘non-dom’ tax system.

British hedge fund veteran and billionaire Michael Edward Platt, who co-founded BlueCrest Capital Management, has also moved his headquarters to the United Arab Emirates. Another well-known move to Abu Dhabi is that of Shravin Bharti Mittal, managing director of Bharti Global Ltd. and son of telecom tycoon Sunil Bharti Mittal. The billionaire CEO of payments processor Checkout.com Guillaume Pousaz has recently switched his country of residence from the UK to tax haven Monaco.