Millionaires may exit UK in record numbers after non-dom tax shake-up

The United Kingdom is expected to see a record outflow of wealthy residents in 2025, with 16,500 millionaires projected to leave the country. The migration is being linked to recent changes in tax and visa policies, according to the latest Henley Private Wealth Migration Report.

The report estimates that these departing individuals collectively hold £66 billion in investable assets. The shift follows the UK government’s decision to abolish the long-standing non-domicile (non-dom) tax regime in April and introduce a stricter residence-based tax system.

“This unprecedented outflow follows an already record-breaking year in 2024, when 10,800 affluent residents departed in search of greener pastures — compounding the mounting capital drain that began with Brexit,” said Dr. Juerg Steffen, CEO of Henley & Partners, the firm behind the study.

Before 2016, the UK typically gained more millionaires through migration than it lost. But this trend has reversed following two major policy moves: the closure of the Tier 1 investor visa in 2022 and the overhaul of non-dom tax rules in 2024. These changes, followed by Labour’s proposed revisions to inheritance tax, have accelerated the exit.

Under the new rules, wealthy foreigners who have lived in the UK for more than four years are subject to UK income and capital gains taxes on their global earnings. Their worldwide assets also fall under the UK’s inheritance tax, which is charged at 40%.

The migration report shows that the UK is projected to lose more high net worth individuals than China or Russia in 2025. While Britain remains attractive to some foreign investors, including Americans seeking to relocate, the inflows have not matched the rate of departures.

Henley & Partners reported a 183% increase in the number of British nationals applying for residence or citizenship abroad through the firm in the first quarter of 2025 compared to the same period last year.

Among the top destinations for departing UK millionaires are the United Arab Emirates, the United States, Italy, and Switzerland. The UAE is forecast to receive the highest net inflow of millionaires globally this year, with 9,800 expected arrivals.

Prominent names reported to have left the UK include heiress Anne Beaufour, investor Max Gottschalk, JC Flowers’ Tim Hanford, and boxing promoter Eddie Hearn. Steel magnate Lakshmi Mittal is also said to be considering relocation.

Meanwhile, some EU countries such as France, Spain, and Germany are also facing similar trends, with expected net losses of high net worth individuals this year.