A majority of Britain’s millionaires believe they would enjoy a better quality of life overseas, as higher taxes and the rising cost of living fuel unease among the wealthy.
A survey of 1,000 people with a net worth of at least £1 million found that 60 per cent thought life would be better abroad, while just over half said they would be more likely to leave if Chancellor Rachel Reeves pressed ahead with a wealth tax.
The research, commissioned by the migration consultancy Arton Capital, highlights what it called a “tipping point” for the UK’s wealthy elite.
Armand Arton, the firm’s chief executive, said: “The uncertainty around the government’s proposed wealth tax mirrors the ongoing economic uncertainty seen around the world. The longer unpredictability persists, the greater the risk of losing capital, talent and long-term investment to countries that offer greater security.”
Concerns among the wealthy have intensified since Reeves scrapped the “non-dom” regime in April, a longstanding arrangement that allowed foreign residents to shield overseas earnings from UK tax.
The Office for Budget Responsibility has forecast that up to a quarter of non-doms may leave the country as a result, though early payroll data suggests departures have so far been in line with or below those predictions.
The survey — conducted by research firm Walr between 31 July and 8 August — found 53 per cent of respondents already feel less wealthy due to the rising cost of living. Six in ten said their quality of life would be somewhat (31 per cent) or significantly (29 per cent) better in another country.
When asked where they might relocate, 35 per cent cited the United States, 33 per cent Canada and 25 per cent Australia. The UAE, with its zero income tax regime, ranked fourth at 17 per cent.
Despite concerns about tax policy, two-thirds (67 per cent) of millionaires surveyed still see the UK as an attractive place to invest, citing its role as a global financial hub. More than four in five (81 per cent) also said they continue to feel wealthy despite the higher tax burden.
Arton said this showed there was still resilience in Britain’s reputation: “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. Whether they will still feel secure after a potential tax hike remains to be seen.”
Reeves has promised that ending the non-dom regime and closing tax loopholes will help fund an additional 40,000 NHS appointments a week. But analysts warn that the Treasury still faces a projected £50 billion shortfall, according to the National Institute of Economic and Social Research. That has led to speculation about wider tax reforms, including changes to capital gains tax and inheritance rules.
The findings will add to pressure on ministers to reassure high-net-worth individuals that Britain remains a competitive place to live as well as invest, amid mounting evidence that the global race to attract wealthy residents is intensifying.