Have recent tax changes led to a UK millionaire exodus?

Recent reports suggest that record numbers of millionaires are leaving the UK in the face of a tax system increasingly hostile to high net worth individuals (HNWI). 

Even before Labour’s Budget back in autumn 2024, the Adam Smith Institute anticipated a 20% fall in the share of the UK population who are millionaires by 2028.  

More recently, MoneyWeek published Henley & Partners figures that suggest the UK will lose 16,500 millionaires this year alone. 

Tax changes, including to employer NI and CGT, could mean higher bills for HNWIs 

Rachel Reeves’ 2024 Autumn Budget contained several high-profile tax changes, intended to fill a perceived £22 billion “black hole” in the public finances.  

If you’re a business owner, you’ll already have felt the effects of changes to employer National Insurance (NI). The rate increase (to 15%) has been applied since April 2025. At the same time, the threshold for NI contributions fell to £5,000 a year.  

Changes to Capital Gains Tax (CGT) might have been more worrying, as the main CGT rate increased from 30 October (from 20% to 24% for those on the higher rate of Income Tax).  

The lifetime limit for Investors’ Relief (IR), meanwhile, fell from £10 million to just £1 million. In another high-profile change, Agricultural Property Relief saw Inheritance Tax (IHT) now applicable on assets above £1 million, albeit with 50% relief. 

Finally, and arguably the most important factor in the reported millionaire exodus, was the government abolishing “non-dom” status. 

Non-domicile, or non-dom status, describes someone whose permanent home is outside the UK for tax purposes. You might choose to nominate a non-UK country with a lower rate of tax as your domicile and only pay UK tax on money earned in the UK. 

Following then-chancellor Jeremy Hunt’s announcement that non-dom tax rules would be phased out, Rachel Reeves confirmed its replacement in the form of a residence-based scheme. Some HNWIs, though, might already have made their choice. 

As millionaires consider leaving the UK, other countries are looking to attract them 

If indeed there has been a millionaire exodus, the hostility of the UK tax system is only half the story. While HNWI are turning away from the UK, other nations are actively courting millionaires. 

The New Zealand Herald recently announced a 230% increase in enquiries for its Active Investor Plus Visa following recent rule changes.  

Greece has also seen a surge in popularity. Its golden visa program is now the world’s most sought-after, according to Greek Travel Pages, having recently beaten Portugal into second place. The United States is also said to be exploring ways to attract investment through HNWIs.  

Forbes reported back in March that 1,000 “Gold Card” visas had been sold in one week. With each one requiring an investment of £5 million, that meant $5 billion toward the growing US national debt. 

Financial concerns alone shouldn’t make your decision, though, and advice can help 

The professional financial advice you receive is aligned with your long-term goals and changing circumstances. Your plan is not set in stone. It is robust and flexible to adapt to changing government legislation and economic realities.  

Advice can help you think about: 

• The tax implications of a move abroad, from double tax agreements to the wealth taxes that could negatively offset savings in other areas. 

• How to plan for every eventuality, including maintaining bank accounts in both countries, factoring in exchange rates on your salary, and maintaining UK-based protection products. Remember, too, that legislation can change, so contingencies are key. 

• The importance of remembering your retirement, from your continuing eligibility (or not) to State Pension rises and how your personal plans remain invested, whether in the UK or transferred to a qualifying recognised overseas pension scheme (QROPS). 

It’s important to think about your non-financial reasons for a move, too. 

Consider your likely quality of life in your new home compared to the UK. What is overall wellness like there? What about education and healthcare? Or crime rates? 

There’s a lot to consider, but we’re on hand to help, so get in touch now.  

Get in touch 

If you have any questions or concerns about a potential move overseas, please reach out to your Foster Denovo adviser by emailing advise-me@fosterdonovo.com or calling 0330 332 7866 for more information.  

Please note 

This article is for general information only and does not constitute advice. The information is aimed at retail clients only. 

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. 

The Financial Conduct Authority does not regulate taxation advice and deposit Accounts.