The United Kingdom is experiencing a significant shift in its millionaire population, as a record number of high-net-worth individuals are expected to leave the country in 2024. Research conducted by the Henley Private Wealth Migration Report indicates that the UK will see a net loss of 9,500 millionaires this year, more than double the figure from the previous year. This trend marks a stark turnaround for Britain, once considered a prime location for the world’s super-rich. The country has fallen behind only China in terms of the expected outflow of millionaires in 2024.
Historical Migration Trends
Historically, the UK has attracted wealthy families from across Europe, Africa, Asia, and the Middle East. However, this trend began to reverse about a decade ago, with more millionaires leaving the country than coming in. Between 2017 and 2023, post-Brexit, the UK lost a total of 16,500 millionaires to migration. The current projections for 2024 are even more concerning, indicating a steady decline in the country’s millionaire population.
The upcoming general election in the UK is expected to further accelerate the exodus of high-net-worth individuals. Recent polls show the left-of-center Labour Party leading over the right-wing Conservative Party, with a populist right-wing party also gaining ground. Labour has positioned itself as a pro-business party focused on wealth creation, but its election manifesto also proposes measures to target tax loopholes benefiting the wealthy. This includes closing tax loopholes, reducing tax avoidance, and raising taxes on residential properties purchased by non-UK residents.
The outflow of millionaires from the UK is not only driven by economic and political factors but also by policy decisions leading up to the election. The Conservative government has adopted some of Labour’s policies, such as ending the non-dom tax regime and removing VAT exemptions for private schools. These decisions have further fueled the migration of high-net-worth individuals from the country, adding to the existing challenges faced by the UK’s millionaire population.
In contrast to the UK, other major economies in Europe and beyond have seen an increase in their millionaire populations over the past decade. For example, Germany has experienced a 15% rise in high-net-worth individuals, while the US has seen a significant jump of 62%. This divergence highlights the changing landscape of wealth distribution and migration trends across different countries, with the UK facing unique challenges in retaining its millionaire population.
Overall, the increasing exodus of millionaires from the UK, coupled with policy decisions and political uncertainties, presents a challenging landscape for the country’s wealth management and economic stability. Addressing these issues will require a comprehensive approach that balances the interests of high-net-worth individuals with the broader economic and social considerations facing the UK in the coming years.