UK Millionaire Numbers Hit Post-Financial Crisis Low: What's Driving the Exodus?
The number of millionaires in Britain has fallen to its lowest level since the 2008 financial crisis.
According to new research that will concern policymakers… and present opportunities for those considering relocation.
The Numbers
New analysis reveals a significant decline in UK millionaire numbers, driven by a combination of factors that have made Britain less attractive to high-net-worth individuals.
The research attributes the fall to:
- Falling real asset prices, particularly in prime property markets
- Low household savings rates limit wealth accumulation
- Active emigration of high-net-worth individuals to a lower-tax jurisdiction
- Changes to the non-dom tax regime, reducing the UK's appeal to international wealth
Why Are HNWIs Leaving?
The report identifies several factors pushing wealthy individuals out of the UK:
Tax burden
Overall levels of taxation in the UK have increased, with higher rates of capital gains tax, increased dividend taxation, and the freeze on income tax thresholds creating fiscal drag that pulls more people into higher brackets.
Non-dom abolition
The removal of the non-dom regime from April 2025 fundamentally changed the UK's proposition for internationally mobile wealth.
While the new Foreign Income and Gains (FIG) regime offers some transitional relief, it is time-limited and less generous than the previous system.
Inheritance tax concerns
Ongoing speculation about wealth taxes and the expansion of the inheritance tax to pensions from April 2027 has created uncertainty for estate planning.
Cultural factors
Some cite what they perceive as a hostile attitude toward wealth creation, making alternative locations more appealing on a personal as well as financial level.
Where Are All The HNWI's Going?
The destinations of choice for departing UK millionaires reflect a combination of tax efficiency and lifestyle considerations:
UAE
Zero personal income tax, no capital gains tax, and an increasingly sophisticated infrastructure for wealth management. Dubai and Abu Dhabi have invested heavily in attracting international HNWIs. Download our relocation guide here >>
Portugal
The NHR regime, though modified, continues to offer benefits for retirees and certain categories of income. The lifestyle appeal of the Algarve and Lisbon remains strong.
Italy
The Italian flat tax regime for new residents offers €100,000 per year on worldwide income (excluding Italian-source income) for qualifying individuals.
Switzerland
Traditional appeal for privacy and stability, though more expensive than newer competitors.
Cyprus
A 60-day tax residency rule and non-dom status offering favourable treatment for dividends and interest.
What This Means for You
If you are considering your options, now is the time to plan:
1. Assess your position: Understand your current UK tax exposure and how changes will affect you
2. Consider timing: Some planning opportunities have deadlines, particularly around the FIG regime
3. Evaluate destinations: Each jurisdiction offers different benefits; the right choice depends on your circumstances
4. Seek professional advice: Relocation planning involves tax, immigration, property, and personal factors that require coordinated expertise
The Bigger Picture
A shrinking millionaire population has consequences beyond the individuals concerned. High earners contribute disproportionately to tax revenues, charitable giving, and business investment.
If the trend continues, it may accelerate pressure on public finances and economic dynamism.
For those still considering their position, the question is increasingly not whether to plan, but
when. Mosaic Chambers specialises in tax planning for HNWIs considering international relocation.
Contact us to discuss your circumstances.
