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Prof. Trevor Williams is Chair and Co-founder of FXGuard and former Chief Economist at Lloyds Bank Commercial Banking.
We live in interesting times. Migration is no longer primarily associated with those on low incomes — increasing numbers of high-income individuals are also relocating globally. However, their destinations of choice differ markedly. The most striking contrast is between the USA and the UK, both of which rank among the W10 — the top 10 wealthiest countries in the world. While America has retained its position as the world’s richest and most attractive capital market location, the UK is slipping fast. It is currently experiencing a significant and accelerating outflow of high-net-worth individuals. Provisional data in the Henley Private Wealth Migration Report 2025 indicates a net loss of approximately 16,500 millionaires in the UK in 2025, with estimated wealth of a staggering USD 91.8 billion — this surpasses even the USD 14.7 billion wealth held by the 1,500 high-net-worth individuals migrating from Russia. By contrast, the USA is projected to see a net influx of 7,500 millionaires with cumulative wealth of USD 43.7 billion.
On the bright side, the UK ranks 5th globally in terms of its high-net-worth individual population, but that’s as good as it gets. The bad news is that it is losing wealthy people fast — and is the only W10 country that has seen negative millionaire growth over the past decade. Since 2014, the number of resident millionaires in the UK dropped by 9% compared with the W10’s global average growth of 40%. Over the same period, the USA saw a 78% increase in millionaires — the fastest growth among the W10.
The USA also retains its position of having the largest number of millionaires and billionaires, as well as the world’s most affluent and deepest capital market. Of course, these two factors may be self-reinforcing. New World Wealth data analysis reveals how capital flows resulting from high-net-worth-individual migration are key drivers of innovation and wealth creation. A strong inward flow of millionaires creates a positive, self-reinforcing loop. That America is home to the largest, deepest capital market and is an attractive and welcoming location holds obvious appeal for the globally wealthy. Between 2017 and 2021, under Donald Trump’s first presidency there were also significant tax cuts in the USA.
However, is the opposite also true? When the wealthy leave a country, does their capital necessarily follow? And does that apply to the UK, as it sees a net outflow of its millionaires, a shrinking capital market, and tax hikes rather than tax cuts? This year, tax as a share of GDP in the UK will likely reach its highest level since 1947. It has gradually risen under Conservative and Labour administrations from around 32% of GDP 20 years ago to 37% today.
The difference between the two countries in stock market performance over the last decade has also been stark. While the UK stock market currently ranks 11th globally by market cap, the USA ranks 1st by some distance. Notably, over the previous decade, the S&P 500 grew by 183% in USD terms versus ‒1% growth in the UK’s FTSE 100. In 2024, some 88 firms delisted from the London Stock Exchange. Meanwhile, liquidity is diminishing in the UK capital market, and investor confidence is waning, which is reflected in the exodus of capital and the rich from the country.
None of this fully explains why the UK has become so unattractive to high-net-worth investors. Another possible reason is that US equity returns have outperformed the UK’s by nearly three times over the last decade: 15.5% versus 6.1% in the UK. Britain’s reputation as a friendly place for tech-focused firms to locate and obtain liquidity is also suffering. Its regulatory framework and capital structure are less attractive than several W10 countries, particularly the USA, and, increasingly, other European hubs, such as Paris. The UK’s exit from the European market has also made it significantly less attractive and less flexible than expected.
More specifically, the UK’s attractiveness to the wealthy has also been eroded by the loss of some Euroclear activities since Brexit, leading to a shift elsewhere of market participants and capital. Furthermore, the UK has not rolled back financial regulation, which was anticipated by many when it left the EU’s single market and customs union. Instead, in a move widely criticized, the government shut down the UK Tier 1 Immigrant Investor Program in 2022, thereby eliminating an entry point for millionaires. This is in strong contrast to many other countries that have been acting to attract wealthy individuals.
Recent policy shifts have significantly diminished the UK’s appeal to wealthy foreign nationals. The abolition of the non-domicile status, initially announced by the Conservative administration under Chancellor Jeremy Hunt, is a prime example. Unlike many jurisdictions that offer more favorable tax treatment to new residents, the UK operates a residence-based tax system. This means that high-net-worth individuals are taxed on global incomes and gains. After 10 years of residence, this extends further to include all worldwide assets, even those acquired prior to moving to the UK, rather than just the wealth generated while living in the country.
A series of tax reforms have further dampened the UK’s appeal to affluent individuals and families. The reduction in business property tax relief, the hike in inheritance tax introduced in the last budget, and the retroactive taxation of trusts set up a few years ago have all contributed to a progressively less favorable fiscal environment. These developments are prompting many family-owned trusts to consider selling up and leaving the UK. It should, therefore, not come as a surprise that some wealthy individuals are choosing to avoid the UK, especially when other countries are incentivizing their relocation. For instance, Italy offers a flat tax on global income, with no wealth or inheritance tax and no obligation to disclose foreign income.
Other jurisdictions, including Dubai and Switzerland, offer similarly competitive policies, with some focusing on preferential treatment of digital and cryptocurrency gains. Meanwhile, in the UK, private school fees are now subject to a 15% VAT. While such a levy might seem minor in isolation, it adds to a growing perception among both domestic and international high-net-worth individuals that the UK no longer offers the financial advantages it once did.
The cumulative effect of these changes has led to a decline in the UK’s attractiveness as a place to live, invest, and do business for the world’s wealthy. To reverse this trend, a strategic policy overhaul is imperative. This transformation should embrace competitive incentives akin to those offered by other leading jurisdictions. Such a reform is necessary to retain existing millionaires, attract new ones, and stem the accompanying capital outflow. Without such a decisive shift, the UK’s loss of high-net-worth individuals is likely to persist.
Henley & Partners assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
