May 25, 2025
The United Kingdom is witnessing an unprecedented departure of high-net-worth individuals (HNWIs), with the latest notable exit being the heir to the $27 billion Bharti Enterprises fortune. This move underscores the growing unease among the wealthy regarding the UK’s evolving tax landscape.(ETV Bharat, The Times)
The Labour government’s recent overhaul of the non-domiciled (non-dom) tax status has been a significant catalyst for this exodus. The abolition of the non-dom regime now subjects foreign residents to UK taxes on their global income and assets. This policy shift has prompted a surge in relocation inquiries, with Henley & Partners reporting a 183% year-on-year increase. Popular destinations for these relocating millionaires include the United Arab Emirates, Italy, and Switzerland .(The Times, The Times)
The impact of these changes is profound. The UK is projected to experience a net loss of 9,500 millionaires in 2024, more than double the 4,200 who left in 2023. This trend positions Britain as the second-largest global loser of millionaires, trailing only China . The departure of such significant figures not only affects tax revenues but also has broader implications for investment and employment within the UK.(ETV Bharat)
In response to mounting concerns, Chancellor Rachel Reeves has announced plans to amend the non-dom tax rules. The proposed changes aim to improve the temporary repatriation facility, allowing non-doms to bring money into the UK without facing prohibitive taxes. However, experts argue that these measures may be insufficient to stem the tide of departures, especially as many wealthy individuals have already made relocation plans .(The Times)
The departure of the Bharti heir, following in the footsteps of other prominent figures like steel tycoon Lakshmi Mittal, signals a broader shift in the UK’s appeal to global investors. As the country grapples with balancing fiscal responsibility and maintaining its attractiveness to the wealthy, the long-term economic implications of this wealth exodus remain to be seen.(The Times)
This trend also reflects a global reconfiguration of wealth hubs, with countries offering favorable tax regimes and investment opportunities emerging as new centers of affluence. The UK’s challenge lies in adapting to this changing landscape while safeguarding its economic interests.
