UK Lost 10,800 Millionaires in 2024 As Non-Dom Changes Spark Record Exodus

A wave of high-net-worth individuals abandoned the UK in 2024, marking an unprecedented exodus that saw one millionaire leave the country every 45 minutes.

The Labour Party’s budget overhaul and scrapping the non-dom tax regime has catalyzed the departure of 10,800 wealthy individuals, representing a 157% increase from 2023, according to the Henley Wealth Migration Dashboard, compiled by Henley & Partners and New World Wealth.

Only China experienced a greater loss of wealthy residents during this period.

According to Henley & Partners’ analysis, the exodus struck hardest at the upper echelons of wealth, as 78 centi-millionaires and 12 billionaires have departed British shores in 2024.

The firm’s data shows wealthy Britons primarily relocated to the European Union—specifically Italy, Malta, Switzerland, Portugal, and Cyprus—followed by the United States, United Arab Emirates, and Australasia.

The Caribbean Islands (particularly the Cayman Islands), Canada, and Singapore have also arisen as key destinations while emerging markets like South Africa and Thailand gained popularity among departing millionaires.

The UK robbing itself “of billions in investment capital”

Peter Ferrigno, Group Tax Director at Henley & Partners London, sees Brexit’s ongoing repercussions in the migration patterns.

He says the “need for UK nationals to get a visa to go and live in the EU” marks a stark change from pre-2020 freedoms, yet wealthy Britons now willingly make “six and seven-figure investments in another country” to secure their departures.

While the UK’s new inbound tax rules offer more generous terms for the first four years, Ferrigno says the absence of an investment migration route “robs the country of billions in investment capital, especially from Americans keen to leave the US.”

“The grass can ultimately be greener elsewhere”

A deVere Group survey reveals that 42% of individuals holding UK financial assets actively seek to transfer their wealth to “more tax-friendly” jurisdictions.

Rachel de Souza of RSM UK told the Independent she observes a shift in migration patterns: While non-doms dominated relocation inquiries before October’s Budget, British entrepreneurs now drive these requests, explicitly citing the budget announcements as their motivation.

Stuart Wakeling, Managing Partner at Henley & Partners UK, cites a complex web of motivations beyond tax concerns.

He explains the “Covid pandemic, political instability, cross border tensions, climate concerns, and increased crime in London—especially phone and watch thefts” have pushed many to reconsider their ties to Britain.

He says that wealthy individuals grow “more and more disassociated with the country of their birth,” and the upheaval of relocation “is a change worth making.”

Multiple residencies have become as essential as “being multi-banked,” particularly when “the grass can ultimately be greener elsewhere.”

Chancellor Rachel Reeves’ October Budget accelerated the exodus through multiple tax changes: Raising basic rate capital gains tax from 10% to 18%, increasing the higher rate from 20% to 24%, and lifting National Insurance to 15% on salaries above £5,000 from April—up from 13.8% on salaries above £9,100.

At the Confederation of British Industry conference, she challenged critics to provide alternatives to address Labour’s claimed £22 billion fiscal hole.

A recession is potentially “around the corner“

According to The Telegraph, high-profile departures include Pimlico Plumbers founder Charlie Mullins, who relocated to Spain and believes “Britain is in trouble,” citing increased taxes and new employment laws complicating business operations.

German technology entrepreneur Christian Angermayer chose Switzerland, while British hedge fund billionaire Alan Howard explores a Geneva move.

Aston Villa owner Nassef Sawiris contemplates a Middle East relocation, and British real-estate investor Asif Aziz has settled in Abu Dhabi.

The new regime replacing the centuries-old non-dom system particularly concerns wealthy residents.

Under the old system, 74,000 non-doms, including 37,800 long-term UK residents, pay £30,000 annually to shelter offshore income.

An Oxford Economics survey found that nearly two-thirds of the UK population plan to leave, primarily due to new inheritance tax obligations on worldwide assets.

Andrew Amoils of New World Wealth told the Mirror he sees Britain’s decline as a wealth hub reflecting a broader shift.

He says that London was a premier wealth magnet between the 1950s and early 2000s, but the advantage of English-speaking markets has diminished as other economies grew.

The impact extends beyond individual wealth. A survey by the Office for Budget Responsibility found non-doms contributed £800,000 in VAT annually and £890,000 in stamp duty over five years, while Oxford Economics says the respondents to their survey have invested an average of £118 million since arriving and donated £5.9 million to charitable causes.

David Hawkins of Foreign Investors for Britain told The Times he considers these “ideology-based decisions” a “monumental act of national self-harm,” affecting “businesses, jobs, investment, spending into the economy and tax take and philanthropy.”

The Adam Smith Institute projects the non-dom reforms will shrink the economy by £1.3 billion a year for the next decade and potentially eliminate over 23,000 jobs by 2030 through lost investment.

Oxford Economics warns the plans will cost the exchequer nearly £1 billion annually due to departing non-doms—before accounting for decreased VAT receipts and other taxes.

The Treasury maintains its commitment to “progressive reforms underpinned by fairness,” projecting the non-dom reforms will raise £33.8 billion over five years to fund investment projects and improve living standards nationwide.

James Reed, chairman of Reed recruitment, told the Independent the Budget has “spooked business” and that recession is potentially “around the corner.”