Tax Worries Drive One-Third of Wealthy Britons to Consider Emigrating

A significant portion of affluent Britons, nearly one in three, are contemplating a move out of the UK. This trend is fueled by diminishing confidence in the national economy and growing apprehension about future tax policies, prompting wealthy individuals to re-evaluate their residency and financial management strategies, according to a recent study. The Saltus Wealth Index Report, released last month, indicates that the percentage of wealthy Britons considering emigration has climbed from 25% a year ago to 30%. Specifically, 8% are actively exploring relocation options, while an additional 22% are open to the idea in the future. Although 70% of respondents have no immediate plans to leave, the report underscores the importance of economic stability and a predictable tax system for internationally mobile wealth.

The Saltus analysis surveyed 2,000 UK adults possessing at least £250,000 in investable assets, excluding their primary residence. The findings reveal a decline in confidence in the UK economy among high-net-worth individuals (HNWIs), dropping to 56% from 66% in the previous year. Furthermore, 40% of HNWIs identified potential tax changes as a significant risk to their wealth. The abolition of the UK’s non-domiciled tax regime in April of last year has exacerbated concerns regarding the UK's attractiveness to wealthy individuals and families.

This potential exodus of wealthy individuals is proving beneficial for countries offering more lenient tax regulations, as they actively seek to attract British wealth. Consequently, more affluent individuals are exploring alternative nations for their financial assets. Prominent destinations include the UAE, Switzerland, Italy, Singapore, and the US. The UAE, in particular, has emerged as a leading choice for migrating millionaires, boasting benefits such as zero income tax, long-term residency options, advanced infrastructure, established financial hubs, and a conducive business environment for investors and entrepreneurs.

CitizenX, a Swiss technology and immigration advisory firm, forecasts that the UK could experience a net loss of 5,700 millionaires in 2027. While this figure represents a substantial outflow by historical standards, it is projected to be lower than the previous year's net loss of 8,600, which was the largest globally at that time. Simon Gordon, managing director for the Middle East at the Dubai-based consultancy Sovereign PPG Corporate Services, highlighted the critical question of whether recent UK tax changes and ongoing uncertainty will precipitate a lasting shift in the preferred locations for wealthy families to reside, operate businesses, and manage their assets.

Mr. Gordon noted that UK-origin inquiries concerning the UAE experienced a dip between March and May due to regional conflict but rebounded from June onwards, consistently representing 20% of UK leads by September. He stated, “This suggests that, despite the uncertainty, the UAE remains firmly on the radar for people considering their longer-term plans.”

Tax Overhauls Intensify Debate

Under the UK’s new foreign income and gains regime, eligible individuals who have been non-residents for at least 10 consecutive years can receive relief on qualifying foreign income and gains for their initial four years of UK tax residence. Post this period, they are generally subject to taxation on their worldwide income and gains. Inheritance tax has also transitioned towards a residence-based system, with overseas assets typically falling within its scope after an individual has been a UK resident for 10 out of the preceding 20 tax years, subject to specific regulations.

The discontinuation of the non-domicile (non-dom) regime and the shift towards residence-based inheritance taxation have reportedly “increased the urgency of conversations with internationally mobile families,” according to Mr. Gordon. Sovereign PPG’s data indicates that the UAE accounted for 16.2% of their UK-origin inquiries, surpassing the Isle of Man (12.8%), Portugal (11.7%), Gibraltar (5.5%), and Malta (4.3%).

Approximately 60% of UK-origin inquiries related to the UAE involved company formation, business licensing, or other commercial setup requirements. An additional 21.9% pertained to residency, relocation, or visas, while 13.9% concerned wealth structures like trusts, foundations, and holding companies. Mr. Gordon commented, “Tax efficiency may start the conversation, but it is rarely enough to complete the move,” adding that the UAE’s connectivity, business infrastructure, and market access across the Middle East, Asia, and Africa are attractive to families seeking a commercial base. Switzerland and Singapore offer robust wealth management sectors, while Portugal and Malta continue to draw individuals seeking European residency and lifestyle advantages.

Across all UK-origin inquiries to Sovereign PPG, 42% referenced business or company setup, and 28.9% involved wealth or succession planning. These UK-origin inquiries have constituted approximately 19% of the group’s total leads over the past four years. Meanwhile, the broader migration outlook remains significant, with Henley & Partners and New World Wealth forecasting a record 165,000 millionaire relocations globally in 2026, with the UAE anticipated to remain the primary destination for inflows. The challenge for the UK lies in balancing tax reforms with its capacity to retain mobile investors and entrepreneurs, while the UAE has the opportunity to convert initial interest into sustained investment and economic activity. Mr. Gordon concluded, “The UAE’s long-term challenge is not simply to attract wealthy residents, but to convert initial tax and residency interest into enduring business activity, investment and family connections.”