The United Kingdom is expected to experience a significant exodus of millionaires this year, according to a recent study. The Henley Private Wealth Migration Report predicts a net loss of 9,500 high-net-worth individuals in 2024, more than double the figure recorded the previous year. This trend is attributed to various factors, including the upcoming general election and changes in government policies.
Migration Trends
In the past, the UK was considered a desirable location for the world’s super-rich, attracting wealthy families from mainland Europe, Africa, Asia, and the Middle East. However, this trend began to reverse about a decade ago, with more millionaires leaving the country than arriving. Between 2017 and 2023, post-Brexit, the UK lost a total of 16,500 millionaires to migration, reflecting a significant shift in migration patterns.
The upcoming general election is expected to further accelerate the exodus of high-net-worth individuals from the UK. Recent polls indicate a significant lead for the left-of-center Labour Party over its rival right-wing Conservative Party. Labour’s election manifesto includes plans to target tax loopholes benefiting the wealthy and increase taxes on certain assets, which could motivate more millionaires to leave the country.
Policy Decisions
Government policy decisions also play a significant role in the migration of millionaires from the UK. The Conservative government has adopted some of Labour’s proposals, such as ending the non-dom tax regime from 2025. Additionally, Labour’s plans to remove tax breaks for private schools and increase taxes on residential properties owned by non-UK residents could further contribute to the outflow of high-net-worth individuals.
The decline in the number of millionaires in the UK stands in stark contrast to most other major economies in Europe and beyond. While the UK has seen an 8% decrease in the number of high-net-worth individuals over the past decade, countries like Germany have experienced a 15% increase, and the US has seen a 62% jump. This disparity reflects the impact of various economic and political factors on migration trends.
The exodus of millionaires from the United Kingdom is a complex phenomenon influenced by multiple factors, including political developments, government policies, and economic conditions. The upcoming general election and proposed changes in tax laws are likely to accelerate this trend, leading to a significant outflow of high-net-worth individuals from the country. Understanding the reasons behind this migration is essential for policymakers and stakeholders to address the underlying issues and create a more conducive environment for wealth creation and retention in the UK.