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A growing number of wealthy people are signalling their intention to relocate from the UK this year as concerns over tax and pension reforms prompt an exodus.
Wealth managers say many clients are preparing to leave, with an average of 52 per firm, ranging from single figures to as many as 300, according to the FT and Savanta wealth management survey 2025.
The UK is projected to lose a record 16,500 high net worth individuals this year, worth nearly $92bn in investable assets, representing an estimated 9 per cent of this group, according to the Henley Private Wealth Migration Report 2025.
Of UK millionaires, 26 per cent are either very or somewhat likely to change their tax domicile within 12 months, reported a syndicate study by Savanta, the market research group.
This figure rises to 29 per cent among those holding more than £5mn in investable assets — very high net worth individuals — pointing to deepening unease among the nation’s wealthiest residents, said the Savanta MillVue Q1 2025 survey.
Tax and pension changes introduced by the Labour government are the main concern of the wealthy as they weigh up the attractions of more fiscally favourable locations. For many, the decision is as much about financial prudence as lifestyle preference.
The inclusion of pensions in inheritance tax (IHT), the government’s new tax regime including capital gains and stamp duty changes are some of the factors behind the exodus.
The Labour government has also decided to close a loophole that allowed non-doms the use of offshore trusts to avoid inheritance tax, which means their worldwide assets are now exposed to the tax at 40 per cent under rules that came into force in April.
This has caused many to leave the UK for more tax-friendly regimes such as the United Arab Emirates, Italy and Switzerland.
However, the FT reported last month that UK chancellor Rachel Reeves was exploring a reverse of the non-dom crackdown as a shrinking tax base from the rich potentially puts pressure on public finances.
There is also a risk that the departure of many self-made entrepreneurs could hit innovation and lead to a ripple effect that undermines the UK’s prosperity.
For UK wealth managers, the consequences reach beyond the loss of assets under management as the country’s waning appeal among affluent individuals makes gaining new clients more challenging, both domestically and internationally, particularly with increasing competition from global wealth hubs such as Dubai, Singapore and Switzerland.
The FT & Savanta wealth management survey 2025 spoke to 23 wealth managers about a range of issues from views on the equity market, regulation, AI, cryptocurrencies and inheritance tax.
The Savanta MillVue Q1 2025 survey interviewed 500 high net worth individuals in the UK.
Elwira Costello is vice-president, global wealth lead at Savanta, the market research and advisory company
