Just how many of the super-rich are fleeing the UK over tax hikes?
Newsletter issue – August 2025
Concerns over Chancellor Rachel Reeves' tax policy shift, scrapping tax benefits for non-domiciled residents (non-doms), has prompted concern amongst high earners. Legal experts warn that UK-based wealthy individuals - not just non-doms - are now considering leaving the UK to reduce their tax liabilities.
Some believe the policy change could cost the Treasury up to £12.2 billion by 2030, despite increased scrutiny from HMRC, especially around statutory residence tests and claims of full-time overseas work, to ensure the correct amount of tax is collected.
However, claims of a mass exodus of UK millionaires due to tax fears are not supported by solid evidence. Reports by Henley & Partners have been misrepresented in the media; they didn't attribute high earners leaving to Labour's tax proposals. Also, migration rates of millionaires have consistently been less than 1% annually since 2013.
Tax Justice UK states that the exodus of billionaires is even less. It believes the 'scare stories' are distracting from the real debate on wealth taxation and economic fairness.
We may never know the true numbers or impact as HMRC has recently admitted that it doesn't know how much tax it receives from billionaires or how many of them even pay tax in the UK.