UK sheds 35,000 millionaires as tax policy fuels wealth exodus

Britain's millionaire population has fallen to its lowest level since 2008 as tax policy and sluggish growth push the wealthy abroad.

Britain has lost 35,000 residents worth £1 million or more since 2024 — a 7 percent decline in two years, the fewest since 2008 — as tax policy and weak growth drive the wealthy abroad.

"Switzerland, Greece, Italy, Portugal, Cyprus and Malta have been falling over themselves to attract the wealthy," said Douglas McWilliams, founder of the Centre for Economics and Business Research, a London-based forecasting firm.

Some 27,300 people with a net worth of $1 million or more left the United Kingdom in 2024 and 2025, according to New World Wealth, a Johannesburg-based wealth intelligence firm. Britain imposes a top income tax rate of 45 percent above £125,140, a 24 percent capital gains tax, and a 40 percent inheritance tax on estates beyond £325,000. The country also ended provisions that had allowed affluent expatriates to shield overseas earnings and assets from these levies.

The exodus carries direct fiscal consequences. The top 1 percent of earners already contribute 29.1 percent of British income taxes, and a government report released last month projects "major sources of pressure on public finances over the next 50 years" as social spending consumes an ever-growing share of GDP. If the wealthiest continue to leave, the tax burden shifts onto those who remain.

Wealth Tax Looms as Burnham Declines to Rule It Out

Prime Minister Andy Burnham has declined to rule out a wealth tax, and a newspaper poll this month found 66 percent of respondents supported one. Leftist economists Gabriel Zucman and Ben Tippet have been promoting a wealth tax of at least 2 percent on Britain's most affluent, claiming it would raise more than £10 billion a year.

The Adam Smith Institute also finds Britain is creating fewer home-grown millionaires. The report cites lower household savings, inflation-based erosion of pension values, a lack of economic confidence reducing property values, and "a culture which is hostile to wealth-creators" among the contributing factors.

The policy debate extends beyond direct taxation. Burnham's government has also announced tighter fiscal enforcement across the economy. New HMRC rules that took effect in 2025 require online selling platforms to report seller earnings automatically, part of an OECD-aligned transparency framework. The Accountancy Partnership, a UK tax advisory firm, warns that further crackdowns could follow as the government seeks revenue to fund its 20 percent cut to business rates for the hospitality industry.

The Fiscal Arithmetic of Wealth Flight

High taxes and burdensome regulations discourage entrepreneurship, the report argues. Class-based resentment is in the political saddle in the U.K., as it is across much of Europe and the U.S.

The last comparable period of wealth flight came after the 2008 financial crisis, when Britain's millionaire count also fell sharply. The current decline differs in character: it is driven not by a market crash but by deliberate policy choices and their effect on high-net-worth individuals.

If the government proceeds with a wealth tax, the fiscal arithmetic could worsen. A 2 percent levy on the top tier would need to generate £10 billion annually to meet proponents' estimates, but if even a fraction of the 27,300 departing millionaires accelerate their exit, the revenue base shrinks further. The Treasury would face the paradox of raising rates on a shrinking pool of taxpayers.

The implications extend beyond the Exchequer. Wealth flight pressures London's prime property market, where foreign buyers have historically supported prices, and reduces the capital available for domestic startups and venture funding. Sterling's outlook also dims as high-net-worth individuals convert pounds into Swiss francs, euros, or dollars when relocating. For a government that campaigned on economic growth, the departure of the country's most productive taxpayers undermines the very revenue base needed to fund public services.

This article is for informational purposes only and does not constitute investment advice.