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A recent report from Henley & Partners reveals a worrying trend for the UK: lThere will be a mass flight of millionaires in 2024, a number that could reach 9,500 high-net-worth individuals. The figure is more than double the number of 4,200 millionaires who left the country last year, and represents an acceleration in the departure of wealthy residents that began with Brexit.
According to the report, Britain, which was once an attractive destination for the wealthy, has seen its attractiveness decline due to ““Accumulating factors” such as Brexit, the energy crisis and high inflation. “The outflow of high-net-worth individuals resulting from the economic and political context is now accelerating due to political decisions ahead of the election,” commented Hannah White, executive director of the Institute for Government.
Moreover, lThe upcoming general elections in the United Kingdom, where opinion polls give a significant lead to the center-left Labor Party, also affect this trend. “Upcoming political decisions could further accelerate this migration,” White adds.
Impact of Brexit and tax policies
Brexit has been a decisive factor in the migration of wealth. During the six-year period from 2017 to 2023The United Kingdom lost a total of 16,500 millionaires due to immigration, according to the report. Economic uncertainty and tougher tax policies proposed by Labor are alienating wealthy residents.
Labor has promised to target the rich to better fund public services. Among its proposals are closing tax loopholes for non-resident individuals, Reducing tax evasion and eliminating tax exemptions for independent schools. White added: “Labour’s commitment to scrap the 20% VAT exemption enjoyed by private schools would be another undesirable development.”
The competition to attract and retain millionaires has intensified globally. The most popular destination for millionaires who dThe United Kingdom is followed by the United Arab Emirates, followed by the United States and Singapore.. These countries adopt policies that are more attractive to high-net-worth individuals.
China also faces wealth flight
The Henley & Partners report also highlights that China is experiencing a significant loss in the number of millionaires, with the number expected to reach 15,200 millionaires. High net worth individuals who will leave the country in 2024. This displacement is due to an increasingly restrictive political and economic environment, similar to the situation in the United Kingdom.
Number of millionaires In the United Kingdom, it has decreased by 8% in the past decadeWhile this percentage has increased in other major economies such as Germany and the United States. Germany saw an increase of 15% and the United States of 62% in the same period.
A global competition to attract high-net-worth individuals These efforts continue to escalate, with countries such as the United Arab Emirates, the United States, and Singapore leading the way.
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