In recent years, the United Kingdom has been experiencing a significant trend of high-net-worth individuals leaving the country. According to the Henley Private Wealth Migration Report, the UK is expected to see a net loss of 9,500 millionaires in 2024. This figure is more than double the previous year’s record of 4,200 millionaires leaving the country. This exodus is a stark contrast to the earlier decades when the UK was seen as a prime destination for the world’s super-rich.
The report by Henley attributes the rise in millionaire migration to various factors, including economic and political uncertainties in the country. The UK has seen a shift in millionaire relocation trends over the past decade, with more millionaires leaving the country and fewer coming in. This trend has only accelerated in recent years, with the UK losing a total of 16,500 millionaires to migration in the period from 2017 to 2023.
The upcoming general election in the United Kingdom is expected to further exacerbate the outflow of high-net-worth individuals. The current political landscape, with the left-of-center Labour Party leading in the polls, has caused concerns among the wealthy. Labour’s manifesto includes plans to target tax loopholes benefiting the wealthy, increase taxes on non-UK residents, and close tax breaks for private schools. These policies have fueled fears among millionaires, leading to a potential acceleration of the exodus.
In contrast to the UK, other major economies have seen an increase in the number of millionaires over the past decade. Countries like Germany have witnessed a rise of 15% in high-net-worth individuals, while the US has seen a significant jump of 62%. This disparity in millionaire growth highlights the challenges faced by the UK in retaining its wealthy population.
The projections for the UK paint a concerning picture, with the exodus of millionaires expected to continue in the coming years. The economic and political uncertainties, coupled with policy decisions targeting the wealthy, are likely to contribute to further outflows. It remains to be seen how the UK government will address this trend and work towards retaining its high-net-worth individuals in the years to come.