Introduction

The UK is facing a stark prediction: its population of millionaires is forecast to shrink by 17% between 2023 and 2028, the largest percentage decline among the world's major economies. This trend is driven by more than just taxes; it reflects a broader crisis of confidence in the UK's long-term fiscal and political stability, leading to an unprecedented outflow of capital.

New data reveals the immediate consequences, with the UK forecast to lose up to 16,500 High-Net-Worth Individuals (HNWIs) in 2025 alone, potentially giving the nation the world's highest net outflow for the year. This shift signals a reversal of fortunes, moving the UK from a magnet for global wealth to a territory from which wealth is actively departing.

Is the Departure Rate Really the Highest in the World?

The data confirms the severity of the trend, establishing that the UK's wealth migration problem is one of global significance.

The UK lost an estimated 10,800 millionaires in 2024, marking a significant rise from the previous year and placing it second only to China in terms of net loss. Crucially, this exodus targets the top end of the wealth spectrum, including centi-millionaires and billionaires. (Source: Henley & Partners / IMI Daily / The Economic Times / Bloomberg).

While the UK may have been a historic global wealth hub, when measured by millionaires per capita, it ranks only 11th globally. This shows that in terms of proportion of wealth, countries like Switzerland (which ranks 1st) and Singapore are significantly more successful at attracting and retaining high-net-worth individuals. (Source: UBS Global Wealth Report).

Bar chart showing the UK millionaire population forecast to decline by 17% from 3.06 million in 2023 to 2.54 million by 2028, contrasting with projected growth in countries like Switzerland and Taiwan.
UK millionaire decline forecast 2023-2028 (UBS Report)

Key Statistics

  • There are 3,061,553 millionaires in the UK as of the latest estimates from 2023, and this is expected to decrease to 2,542,464 by 2028.
  • Globally, the UK ranks third on the list of countries with the most millionaires, behind the U.S. (21,951,319) and China (6,013,282).
  • An estimated 4.48% of people in the UK are millionaires, while Switzerland has the highest proportion of millionaires at 11.91% of the population.
  • The UK is expected to see the largest percentage decrease (-17%) in resident millionaires between 2023 and 2028, with only the Netherlands also expecting a decrease (-4%).
  • London is home to an estimated 227,000 millionaires as of 2025, alongside 4,750 Ultra-High-Net-Worth individuals, and 36 billionaires.
  • An estimated 9,500 liquid millionaires left the UK in 2024 – the second-highest net outflow globally (after China with 15,200).
  • There are 55 billionaires in the UK as of 2025 (equating to 0.814 billionaires per million people), and the UK ranks 10th globally for the number of billionaires.
  • HMRC estimates that wealthy individuals (earning £200,000 or more, or with assets worth £2 million or more) paid a total of £119 billion in taxes in 2023-24.
Map of the UK showing millionaire distribution by region in 2016. London leads with 191,000, followed by South East with 157,000 and East with 93,000.
Statista, "Where the UK's Millionaires Reside"

What Tax Changes Have Driven This Record Exodus?

The primary catalyst for this flight of capital is the cumulative effect of major, sudden changes to the UK's tax code, which have been perceived as both complicated and punitive.

The End of the Non-Dom Era

A key driver was the abolition of the 200-year-old non-domicile tax regime (non-dom status), which allowed UK residents whose permanent home was overseas to shield significant foreign income and gains from UK tax for up to 15 years. This regime has been replaced by the new residence-based scheme (Foreign Income and Gains, or FIG), which significantly alters the tax calculation for global individuals starting April 2025. (Source: Foster Denovo / IFS).

Broader Fiscal Drag and Uncertainty

The non-dom change is combined with broader fiscal hits that affect wealth across the board:

  • Capital Gains Tax (CGT): Recent increases to CGT rates, now up to 24% for higher earners on some assets.
  • Inheritance Tax (IHT): Changes to IHT rules on trusts, making wealth transfer more complex and costly. (Source: IMI Daily / Foster Denovo).

"The core issue is that wealth creators prioritize predictability. When major, fundamental tax regimes are suddenly scrapped or altered, it signals instability, causing capital to seek jurisdictions where the rules are consistent and simpler."

— Adam Woodhead, In-House Economics Lead, The Investors Centre.

Is the UK Perceived as Hostile to Wealth?

Beyond specific tax rates, a significant factor in relocation decisions is the perception that the UK political and social environment is becoming increasingly hostile toward wealth.

The Confidence Crisis

Experts describe the current political climate as "hostile to high net worth individuals (HNWI)" and one where there is a lack of trust in the UK tax system due to its complexity and the constant threat of further, retroactive wealth-focused taxation. (Source: TEAM Asset Management).

The UK's overall appeal has also suffered from non-fiscal factors:

  • Cost of Education: Uncertainty over the potential removal of VAT exemption for private schools.
  • Security/Lifestyle: Concerns over crime and declining public services are increasingly cited as secondary drivers in relocation decisions. (Source: IMI Daily / Henley & Partners).
Chart ranking countries by millionaires per capita. Switzerland leads at 11.91%, Norway ranks tenth at 4.56%. Gold icons symbolize millionaires.
World Bank, "Populations by Country"

Which Global Hubs Are Benefiting from Britain's Loss?

The departing UK wealth is not vanishing; it is actively being courted and attracted by countries that offer greater stability and lower taxation.

  • The Top Attractors: The major beneficiaries include the UAE (especially Dubai), the USA, Switzerland, Italy, and Singapore. (Source: Henley & Partners / St. James's Place).
  • The Pull Factors: These destinations offer zero or low personal income tax environments (UAE) or special tax regimes designed specifically to attract mobile wealth. Countries like Italy are using highly publicized tax incentives and investment migration programs to lure back citizens and attract new investors.
Chart titled Number of millionaires by country showing 2023 and predicted 2028 figures. The U.S. leads with a 16% increase. France shows a 17% decrease.
UBS, "Global Wealth Report"

References

  1. Adam Smith, "Millionaire Tracker"
  2. World Bank, "Populations by Country"
  3. Statista, "Where the UK's Millionaires Reside"
  4. Savory and Partners, "London's Millionaires: Wealth Statistics"
  5. UBS, "Global Wealth Report"
  6. Henley Global, "Henley Private Wealth Migration Dashboard"
  7. UK Parliament, "Collecting the Right Tax From Wealthy Individuals"
  8. UK Government, "Income Tax Rates"
  9. Forbes, "2025 Billionaires List"