UK loses millionaires as London sees exodus of wealth
The UK loses millionaires faster than almost any other country, with London at the centre of this financial shift. According to new data, the capital has seen a significant departure of high-net-worth individuals, second only to Moscow in terms of the overall drop. The figures show that 11,300 dollar millionaires left London over the past year, including 18 with wealth over $100 million and two billionaires.
The reasons? A cocktail of rising taxes, uncertainty post-Brexit, and what many believe is a broader decline in London’s financial appeal. While it still ranks among the world’s top cities for wealth, London’s allure appears to be fading in the eyes of some of its wealthiest residents.
Since 2014, London has lost around 30,000 millionaires, equivalent to 12 per cent of its high-net-worth population. Moscow, impacted by sanctions and international fallout following Russia’s invasion of Ukraine, lost 25 per cent but in absolute terms, London’s loss is greater. Despite the drop, the capital still has around 215,700 millionaires and remains the fourth most expensive city globally, trailing only Hong Kong, New York and Monaco in terms of property costs per square metre.
Andrew Amoils, Head of Research at New World Wealth, said London’s taxes, including capital gains and inheritance tax, are among the highest globally, and that’s pushing entrepreneurs and investors to explore cities like Dubai, Paris and Geneva. “It’s worth noting that most of the companies on the FTSE 100 were started by centimillionaires,” he explained. “So the loss of these individuals has a massive impact on an economy.”
Meanwhile, the London Stock Exchange’s dwindling global influence isn’t helping. Once the largest in the world, it now sits at 11th in global rankings. Fewer company listings and less new investment activity have weakened its standing. As other financial hubs rise, such as Amsterdam and Frankfurt, the sense that London is slipping is becoming harder to ignore.
Compounding the problem is Rachel Reeves’ reform of the non-dom regime, targeting residents who live in the UK but have permanent tax status elsewhere. The move is intended to close loopholes, but critics warn it may deter international talent and capital from basing themselves in the UK. The Adam Smith Institute estimates these policies could cost the UK over £10 billion in growth annually.
Not everyone sees doom and gloom, though. Some argue it’s a much-needed shake-up. But with fewer of the world’s ultra-wealthy choosing London, the long-term implications are real.
Asked about the issue on Wednesday, Culture Secretary Lisa Nandy said: “The report points to a variety of factors that have led to that, most specifically Brexit, and one of the things that we’re committed to doing as a government is making sure that we get a far better deal with the European Union that make sure that we can continue to support British business.”
While Manchester has quietly secured its spot in the global top 50, landing at 46th with 23,400 millionaires, it’s London that’s under the microscope.
For more insights into London’s shifting economic landscape and ongoing financial updates, visit EyeOnLondon. We’d love to hear your views in the comments.
[Image Credit: On the Thames]
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