Over half of the wealthiest Britons would consider leaving if a wealth tax was introduced.
This comes after new research found 60 per cent of British millionaires already believe life would be better abroad.
Britain already lost a net total of over 10,000 millionaires in 2024, a 157 per cent increase from 2023.
The threat of a wealth tax on top of the Chancellor’s decision to end the non-dom status in April, which previously allowed wealthy foreign residents to avoid paying tax on their foreign earnings in the UK, has led to fears that the UK will experience a wealth exodus.
The cost of living crisis is also impacting the appeal of Britain for wealthy individuals, with 53 per cent of respondents to a Walr survey, commissioned by Arton Capital, of 18-70 year olds with a net worth of at least £1 million saying that they felt less wealthy due to the crisis.
When asked where they wished to relocate to, the most popular countries were the United States (35 per cent), Canada (33 per cent) , and Australia (25 per cent). The UAE ranked fourth at 17 per cent, drawing the wealthy in with the prospect of zero income tax.
The majority (67 per cent) still believed that the UK was still an attractive place to invest, in large part due to its position as a leading finance hub, and 81 per cent also still felt wealthy in the UK, even with the cost of living increasing, with Arton Capital chief executive Armand Arton telling The Times: “It’s not all bad news. While the cost of living continues to rise, and many of the wealthy are being tempted by the quality of life on offer elsewhere, the majority of those we surveyed still feel wealthy, despite the looming threat of a wealth tax.
“Whether they will still feel secure in their finances after a potential tax hike remains to be seen.”
In January, the Office for Budget Responsibility found that up to a quarter of non-doms could leave as a result of the change, with data suggesting real figures are in line, or slightly lower than expected.
Rachel Reeves has suggested further taxes targeting wealthy individuals, including a direct tax on wealth, with MPs suggesting a 2 per cent annual tax on assets over £10 million. She has also introduced a number of new taxes or reforms, including scrapping stamp duty in favour of annually paid proportional taxes on properties worth over £500,000, and a new 20 per cent inheritance tax on farms and businesses worth more than £1 million.
Featured image via Yau Ming Low / Shutterstock.
