For decades the United Kingdom — London in particular — was shorthand for opportunity, culture and a safe harbour for global wealth. Stately homes, top universities, premier hospitals and established legal protections made it a favourite base for the ultra-wealthy. But over the last few years that gravitational pull has weakened. The story is not a single event but a piling up of political decisions, fiscal reforms and shifting global alternatives that together have made the UK feel less hospitable to those who can choose where to live.
At the heart of the change lies a seismic tax reform. The long-standing “non-dom” (non-domiciled) tax regime — which let people resident in the UK avoid UK tax on much foreign income — was abolished and replaced by a new residence-based system taking effect from April 6, 2025. For many long-term residents who had relied on complex arrangements to protect their offshore income and assets, the move removed a major financial incentive to stay. The policy switch was explicitly framed as closing a generous loophole, but its practical effect was to make the UK less tax-competitive for internationally mobile high-net-worth individuals.
That policy change didn’t happen in isolation. It was announced, debated and implemented against the backdrop of several high-profile departures and corporate reshuffles that signalled to peers that relocation was a realistic option. Prominent business figures and senior bankers publicly re-based themselves elsewhere after the non-dom overhaul — a symbolic exodus that amplified private conversations among wealthy families about alternatives. Such departures underscore how policy shifts can have outsized signalling effects on networks of capital and influence.
Independent trackers of wealthy migration recorded noticeable movements. Industry reports projected a substantial net outflow of millionaires from the UK in recent years, with some estimates — widely quoted in the press and used by commentators — showing historic levels of millionaire departure as people reconsidered domicile, tax and lifestyle choices. Whether you read the numbers as dramatic or as a modest blip, they changed perceptions: if bankers, entrepreneurs and families with large international portfolios were leaving, others began to ask why they shouldn’t consider doing the same.
Where are people going? The answer is simple: to places that combine favourable tax regimes, easy access to transport and a comfortable lifestyle. Cities such as Dubai, Milan and certain Swiss cantons have actively marketed themselves as friendly refuges for wealth — offering tax breaks, residency programmes and high-quality services. The UAE in particular has become a clear magnet for new millionaire arrivals, promoting a business-friendly environment and a modern luxury lifestyle that appeals to global elites. For many, the calculus of moving now includes not just tax, but speed — how quickly you can set up, buy property, and integrate socially.
Other factors compound the tax story. Post-Brexit regulatory shifts introduced friction for finance and some corporate services that had once clustered in London; planning and property costs in prime neighbourhoods remain high; and debates over philanthropy, public spending and the role of wealthy residents have become more public and politicised. For families weighing school choices, healthcare, domestic staff availability and ease of travel, a perceived reduction in welcome — real or imagined — matters. Media coverage of policy changes and emotive stories about “exodus” amplify these concerns, even when the raw numbers are debated by researchers and NGOs.
It is important, however, to separate headlines from scale. Some analysts warn that reports of a mass wealthy exodus are exaggerated and that the percentage of millionaires leaving remains small compared with the total resident HNWI population. Debates about methodology and projection mean the true effect will be clearer only with time and more robust data. But perceptions can be as powerful as statistics: if wealthy individuals believe the trend is real, their private planning will reflect that belief, creating self-fulfilling momentum.
So is the UK finished as a wealthy destination? Not at all. London still offers unmatched legal, cultural and educational advantages. But what’s changed is the competitive landscape. Global mobility, attractive rival jurisdictions, and clearer domestic policy choices mean wealthy people now weigh the UK against tailored alternatives more often and more quickly than before. For the UK to reclaim its “favourite” status it will need to balance tax fairness with competitiveness, reduce friction for business and residency, and rebuild a clear, confident message that it values the economic and social contributions of the globally mobile wealthy — without appearing to grant them privileges that ordinary residents cannot enjoy.
References (selected)
- UK government policy summary on abolition of non-dom regime.
- Reuters coverage of the UK’s decision to scrap non-dom status.
- Henley Private Wealth Migration Report / Henley press release on projected millionaire movement.
- Financial Times reporting on senior bankers relocating after tax change.
- Coverage of Dubai and UAE’s millionaire inflows and attractiveness to luxury buyers.
