Most of the UK millionaires believe that as the wealthy increase taxes and fuels of life increase, they will enjoy a better quality of life overseas.
A survey of 1,000 people with net worth at least £1 million found that 60% of people believe life would be better, while more than half said they would be more likely to leave if Prime Minister Rachel Reeves paid their wealth tax in advance.
The study commissioned by immigration consulting firm Arton Capital highlights what the wealthy British elite calls a “turning point”.
“The uncertainty of the government’s proposed wealth tax reflects the economic uncertainty seen around the world. The longer the unpredictable duration is, the greater the risk of losing capital, talent and long-term investment to countries that provide greater security.”
Worries among the rich have been intensified since Reeves canceled the Fenom regime in April, a long-term arrangement that allows foreign residents to exempt overseas income from UK taxes.
The Office of Budget Responsibility predicts that up to a quarter of non-DOMs may leave the country as a result, although early wage data suggests that the departure has been consistent with these forecasts so far.
The survey, conducted by research firm Walr from July 31 to August 8, found that 53% of respondents already felt rich due to rising cost of living. Six out of 10 said their quality of life would be some (31%) or significant (29%) in another country.
When asked about where they might relocate, 35% cited the United States, 33% in Canada and 25% in Australia. The UAE ranks fourth with its zero income tax system at 17%.
Despite concerns about tax policies, two-thirds (67%) of the millionaires surveyed viewed the UK as an attractive place to invest in their role as a global financial hub. More than one-fifth (81%) also said they still feel rich despite the higher tax burden.
Arton said this shows that the reputation of the UK is still resilient: “This is not all bad news. While the cost of living continues to rise, and many of the rich are attracted by the quality of life offered elsewhere, most of the people we surveyed still feel wealthy.
Reeves promised that ending the non-competitive regime and ending tax loopholes would help with another 40,000 NHS dating per week. But analysts warn that the Ministry of Finance is still facing an estimated £50 billion shortfall, according to the National Institute of Economic and Social Research. This has led to speculation about wider tax reforms, including changes in capital gains taxes and inheritance rules.
These findings will be increased to ministers to ensure that the UK remains a place of competition and investment, which is on the rise and fall of evidence that competition to attract wealthy residents is intensifying.
