One millionaire left the UK every 45 minutes in 2024 after the Labour Party’s tax overhaul, a report says
Millionaires are leaving the UK in droves since the Labour Party took over last year, The Times reported on Friday. The exodus comes after the government of Prime Minister Keir Starmer confirmed plans to abolish the non-domicile tax regime, which offered significant leeway to wealthy individuals.
In the UK, non-domicile residents only pay taxes on the money they earn in the country, and generally do not have to pay taxes locally on profits they made elsewhere in the world. The regime has allowed wealthy individuals to save money while incentivizing them to stay in the UK. There were around 74,000 ‘non-doms’ in the UK as of 2023, according to official data.
However, the Labour government’s plans to replace the ‘non-dom’ system with a residence-based tax regime have apparently had an impact on their desire to live in the UK. According to data provided to The Times by analytics firm New World Wealth, the UK lost a net of 10,800 millionaires to migration in 2024, a 157% increase compared to 2023.
The outlet added that the actual number of those who left the country is higher because the figure also takes into account wealthy individuals who arrived.
The data means that one millionaire left the UK every 45 minutes after Labour won the election last July, with many moving to Italy, Switzerland, and the UAE, the article says. The UK’s wealthiest echelon was especially inclined to leave, with 78 centimillionaires and 12 billionaires leaving the country last year, according to the data.
In October, the Office for Budget Responsibility estimated that the tax reforms will result in 12-25% of non-doms leaving the country. The Times noted that if a quarter of them do so, it will be a huge blow to the economy. On average, each non-dom paid £800,000 ($970,000) in VAT last year. This category plays a major role in investment and includes typical clients of high-end businesses.
The agency predicted that the changes to the non-domiciled tax regime will raise an average of £2.5 billion a year for the UK budget. However, The Times quoted Oxford Economics as saying the reforms will cost the Treasury nearly £1 billion a year due to a reduction in tax revenue.
Labour has argued that the additional taxes will help fund free school breakfasts, hospitals, and dental care. In July, Chancellor of the Exchequer Rachel Reeves also said Labour inherited from the Tories a budget hole of around £22 billion.
