Are the super-rich leaving London? Tax reforms could spur wealth exodus

London has long been a magnet for the global rich. Oligarchs, leaders in exile, hedge fund managers and high net worth locals coexist in a city where old and new money collide. The global elite are drawn to the British capital for its legal and professional services, top schools, cultural offerings, high-end real estate and of course, for English, a global language for business.

But there are growing signs – met with a shrug or even relief in some quarters – that some of UK’s very richest residents are decamping to countries like Spain, Italy, Switzerland and the United Arab Emirates, places where taxes are lower or where the rich can pay a flat tax to shield their global income.

Notable departures include Nassef Sawiris, an Egyptian businessman and co-owner of Aston Villa football club, who recently told the Financial Times: “I don’t know any person in my circle who is not moving this April, or next April if [their children] have a school year or something like that.”

Alfie Best, founder of a company that operates residential and holiday parks, said he quit Britain for Monaco because of what he described as stifling tax and regulatory burdens. “They’re chasing wealth out the front door,” he said in a phone interview – from the deck of his 100-foot yacht.

“There’s no doubt the billionaire boom is over,” said Robert Watts, compiler of the Sunday Times Rich List, which tracks the wealthiest 350 people in Britain.

Watts, who has been studying trends of super wealthy for the past decade, said that the ultra rich aren’t seething, exactly – but they are weary. “They’re concerned this isn’t a place where it’s easy to start and build and grow a successful business.”

In an effort to boost public finances, Britain’s ruling Labour Government recently scrapped a centuries-old tax regime that allowed some foreign residents – non-domiciled residents, referred to as “non-doms” – to avoid paying UK taxes on overseas income. The changes were actually announced under the previous Conservative Government, and when Labour came into power, they picked up the baton, closing the tax loophole in April.

The Government, led by Prime Minister Keir Starmer, also went further, eliminating inheritance tax breaks on worldwide assets. Britain’s inheritance tax – with a headline rate of 40% – is among the highest in the world, although thanks to various exemptions, most estates end up paying far less.

The moves are projected to raise £12.7 billion ($28.4b) over the next five years. The Government says that this will help to fund Britain’s perpetually strained schools, hospitals and dental clinics.

Critics of the tax changes say it could amount to what British football enthusiasts call an “own goal”. According to the Institute for Fiscal Studies, the top 1% of UK income taxpayers pay 29% of all tax. If too many of those taxpayers leave, the Government could end up with less, not more.

The Centre for Economics and Business Research, a think tank, calculated that if a quarter of non-doms left, gains could be erased; if half go, the Treasury would lose £12.2 billion ($27.3b) over the course of the Parliament.

Mullins, for his part, says he’s done his bit for His Majesty’s Revenue and Customs and is looking into the possibility of starting a plumbing business in Dubai. “I’ve paid over 100 million pounds in taxes over 55 years,” he said of his career in Britain. “I’m not against paying taxes, but now with capital gains, inheritance tax and everything, I feel like they are penalising the wrong people instead of encouraging them.”

Concrete numbers of how many “non doms” have left – one measure of wealth – will be clearer once UK’s tax authorities release detailed figures next year. In the meantime, there are signs.

Stuart Bailey, who oversees “super-prime” property sales at estate agent Knight Frank, said that he noticed an uptick in wealthy sellers after the non-dom tax changes were proposed – not a stampede, but a noticeable trend. He described the current market for homes in the £5 to 10 million ($11.2 - $22.4) range as “absolutely a buyer’s market”.

“There’s quite a lot of choice if you want a mainstream house in Knightsbridge or Belgravia,” he added, referring to two of London’s toniest neighbourhoods.

At the same time, new buyers are showing up, notably Americans, he said. Over the past year, 6618 Americans have applied for British citizenship or residency – a record number. More than 1900 Americans applied between January and March of this year, the highest number for any quarter on record.

Bailey said he noticed an increase in Americans looking at high-end properties that started before President Donald Trump took office, “when the currency differential was in their favour”.

Clare Maurice, a London-based lawyer who advises clients from around the world on tax and private wealth, said that “a very significant number of people have left,” as a result of concerns over tax changes – particularly inheritance tax – and added, “we shall never know how many people have been put off coming altogether”.

Not everyone is lamenting the reported departures of the rich elite. In an article titled, “The super-rich say they are leaving Britain. I’m not sorry,” the Times of London columnist Caitlin Moran pointed to the eerie vibe in some inner London districts. While “offering the modern caveat of #notallmillionaires, by and large, they’re awful neighbours,” she wrote.

Arun Advani, an economist at University of Warwick, recalled a similar moment, in 2017, when new tax rules aimed at the ultra rich pushed 5% of non-doms to leave. The rest? They stayed and paid about 50% more tax, he said.

This time, he expects more departures. The tax changes are bigger, and the timing matters – those that left by a certain date could avoid the new estate tax reforms. “If you were considering leaving, that’s a really strong incentive to do it now rather than later.”

Even so, he said, lifestyle factors are a big consideration when weighing whether to leave: those with kids in private schools are less likely to relocate than a retiree with a villa in Spain. Overall, he expects the net effect for the public purse to be positive.

Tony Travers, a politics expert at the London School of Economics, said that the reported “exodus” reflects a global trend: a “kind of sorting exercise” where some ultra-wealthy people leave high-tax countries, while many others find the benefits outweigh lower taxes elsewhere.

“If they really wanted to, those in elegant townhouses in Manhattan or Knightsbridge could have moved to the Bahamas decades ago. But, they stayed.”

Meanwhile, the Sunday Times Rich List has recorded a dip in net wealth for the past three years. Its 2025 list had 156 billionaires compared to 165 last year – the steepest drop in the list’s 37-year history.

Watts said that the decline was down to a number of factors, from policy changes introduced by successive governments, to changing interest rates, to the attractiveness of other tax-friendlier jurisdictions. Elderly wealthy people, he said, are especially concerned about “what happens when they die and the idea that their companies far away from UK shores would suddenly be liable for UK inheritance tax. Some of them don’t feel like they have a choice but to leave.”

He also speculated on the long-term consequences: “Many of us may be uncomfortable with the very idea of a billionaire, but I think future generations will not thank us if we are blasé about the departure of people who create jobs,” he said.