Daily news highlights: The United Kingdom has long been a favorite place for the world’s richest people to live and work. London especially was seen as a hub for the super wealthy. But now, that is changing fast. Many millionaires are leaving the UK because of new tax rules that could cost them a lot of money.
Why Rich People Loved the UK
- For many years, the UK welcomed rich people from all over the world.
- In 1998, UK politician Peter Mandelson said he was fine with people becoming very rich, as long as they paid their taxes.
- London offered great living conditions, global business opportunities, and a stable legal system.
What Changed?
- Things started to change after the 2022 Russia-Ukraine war. Many rich Russians left London.
- In 2024, the UK government announced it would end “non-dom” tax status by April 2025. This special rule let wealthy people avoid UK taxes on income from other countries.
- Labour’s Chancellor Rachel Reeves also ended tax protection on offshore trusts, meaning people could now be taxed 40% on their global wealth when they die.
The Result: A Mass Exit
- Many millionaires have now left the UK. Reports say over 10,000 rich people left in 2024, with even more expected in 2025.
- Popular destinations include Italy, which offers low taxes on foreign wealth, and the United Arab Emirates, which offers even more benefits.
- Property sales in wealthy areas of London dropped 36% in May 2025 compared to the previous year.
- Companies House reported that more than 4,400 company directors moved out of the UK in the past year.
Big Names Leaving
- Some of the world’s richest people are part of this exodus, including:
- Richard Gnodde of Goldman Sachs
- Nassef Sawiris, Egypt’s richest man
- John Fredriksen, shipping billionaire
- Lakshmi Mittal, a top steel billionaire, may leave soon too
Impact on UK Economy
- These millionaires paid nearly £9 billion in taxes in 2022-23.
- They also spent money in restaurants, shops, and luxury services.
- Many supported charities and cultural institutions.
- Their departure means fewer jobs in legal services, hospitality, and retail.
Government Response
- The UK’s Office for Budget Responsibility still believes the tax change will earn £2.7 billion by 2029.
- However, experts say as many as 32% of non-doms could leave, making the new rule a money-losing move.
- It’s now too late to bring back many of those who already left. But experts say the government can stop more people from leaving by restoring tax exemptions for offshore trusts.
- Chancellor Reeves faces a challenge: how to ease the rules without upsetting Labour voters who support taxing the rich.
What Could Happen Next?
- Wealthy people are planning their moves before the school year starts in September.
- If the government doesn’t act soon, even more millionaires may leave.
- The autumn Budget may be too late to fix the issue.
Daily news highlights continue to show that this millionaire exodus could be a major problem for the UK’s economy, jobs, and international reputation. The Labour government must now decide whether to stay firm or adjust its policies before more damage is done.
