Number of millionaires fleeing UK 'spikes after Starmer comes to power' amid fears over Labour tax plans
18 January 2025, 08:32
A record number of millionaires left the UK last year, with the exodus said to have accelerated after Labour came to power in July.
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Some 10,800 people with liquid assets of over $1 million (£821,500) left the country in 2024, an increase of over 150% on 2023.
A total of 78 centi-millionaires (people with $100 million or more) and 12 billionaires departed the UK last year, according to New World Wealth, a research firm.
The news, coming on the back of recent turmoil in bond markets and warnings from businesses, has raised further concerns about Labour's tax plans.
Millionaires are mostly moving to other European countries such as Switzerland and Italy, or to the UAE.
Expert calls Rachel Reeves' promise not to raise taxes again 'dangerous'
The flows of millionaires out of the country was higher in 2024 as a whole, but the increase is said to have sped up since Labour came to power in the summer.
Among the factors said to be pushing millionaires to leave are Labour's plans to remove the non-domiciled tax regime that allows people to keep non-UK income in a foreign country, in exchange for a fee.
Labour are getting rid of the non-dom regime from April, which Chancellor Rachel Reeves said would raise nearly £13 billion over five years.
Over 70,000 people with non-dom status lived in the UK in 2023.
But a survey of 700 by Oxford Economics found that nearly two-thirds were considering leaving the UK because of the change to the rules.
Economic watchdog the Office for Budget Responsibility estimates that between 12% and 25% will leave after the change comes in.
In contrast to Ms Reeves' comments, Oxford Economics thinks that axing the non-dom regime will end up costing the exchequer £1 billion a year.
Non-dom representative group Foreign Investors for Britain told the Times that the move was "a monumental act of national self-harm".
David Hawkins, representing the group, added: "It appears that decisions have been made not based on the evidence but based on ideology. It’s a real worry because more and more people are leaving.
"And it’s businesses, jobs, investment, spending into the economy and tax take and philanthropy that are hit.”
A spokesperson for the Treasury said: “We are committed to tax reforms that are progressive and underpinned by fairness.
"It is right that those who can afford to, contribute their fair share to fix the foundations to provide stability and fund public services to drive growth.”
