The UK is experiencing a significant outflow of high-net-worth individuals as wealthy residents seek refuge in countries with more favourable tax regimes, a trend that has reportedly accelerated under Sir Keir Starmer’s government…
As highlighted by The Times, more than 10,800 millionaires left Britain last year, representing a staggering 157% increase from 2023, making the UK second only to China in terms of millionaire emigration. This exodus has been linked to Labour’s plans to abolish the non-domiciled tax regime, which previously allowed wealthy residents to shelter offshore income from UK taxation.
Prominent among those leaving are centi-millionaires and billionaires, with destinations like Switzerland, Italy, and the UAE proving particularly attractive. Business leaders, including figures such as Charlie Mullins, founder of Pimlico Plumbers, have publicly criticized the government’s policies, citing rising taxes and regulatory burdens as primary motivators for their departures.
The policy shift includes subjecting overseas assets to UK inheritance tax (IHT), a move that has triggered widespread concern among non-doms. According to Oxford Economics, nearly two-thirds of non-doms surveyed are considering relocating due to these changes. Critics, including Foreign Investors for Britain, argue the reforms are “monumental self-harm,” potentially costing the UK economy over £1 billion annually and risking over 23,000 job losses by 2030.
Notably, the reforms may also impact Monaco, as its low-tax environment and proximity to the UK make it an attractive alternative for displaced non-doms. The Principality’s luxury lifestyle and political stability have long appealed to affluent individuals seeking a secure base for their wealth, reinforcing its reputation as a haven for the world’s elite.
As Labour continues to defend its reforms as progressive and fair, the debate over their economic impact intensifies, with calls for alternative approaches, such as a tiered tax regime, to balance fiscal responsibility with the retention of international investors.
Photo by Marco Chilese