After reports in the last week the Government is considering a u-turn on its policy of charging inheritance tax on global assets for up to 10 years after an individual last reside in the country, new research suggests more high net worth individuals will leave the country over the next 12 months in the ‘largest exodus of millionaires that any country has experienced over the last decade.’
As many as 16,500 millionaires will leave Britain this year, up from 10,800 last year, according to advisory firm Henley & Partners whose research reviewed data tracking 150,000 high-net-worth individuals globally, including through LinkedIn data, property registers and company filings.
The numbers are the largest any country has experienced in the last decade say Henley & Partners, driven by the abolition of non-dom status and new IHT rules.
“This isn’t just about changes to the tax regime; it reflects a deepening perception among the wealthy that greater opportunity, freedom and stability lie elsewhere.”
said Juerg Steffen, chief executive of Henley & Partners.
“The long-term implications for Europe and the UK’s economic competitiveness and investment appeal are significant.”
Elsewhere global residential property agents Knight Frank suggest the changes to non-dom status in March last year have cost the government £401 million in lost stamp duty revenue after the number of £5 million-plus property sales in London fell by 14% in the 12 months to May 2025 compared to the previous year. The loss is calculated on the basis that all transactions would be subject to the additional rate of stamp duty, with half incurring the 2% non-resident surcharge.
Tom Bill, head of UK residential research at Knight Frank, said the resulting effect on the prime property market was predictable. He added:
“The news of a possible U-turn must be a bittersweet moment for those who told the government this would happen.
“The lost revenue takes on extra significance given that the government’s financial headroom is so tight. A figure of £401 million represents 4% of £9.9 billion, which is the latest OBR estimate of how much breathing room the Chancellor has.”
The debate was further intensified this week when Reform UK leader Nigel Farage suggested his party would implement a charge of £250,000 for non-doms to live in the UK which would circumvent the Treasury and be paid directly to the poorest 10% of the population; a policy no too dissimilar to Italy.
“This regime would be extremely attractive for the internationally wealthy and mobile. 20-year exclusion from IHT; much lower cost than Greece’s or Italy’s non dom regimes; 10-year guarantee – this is huge. The wealthy would flood back to London and UK for all the good reasons they used to live here. It would bring back wealth generators at a crucial time in history”
said Stephen Abletshauser, partner at law firm Spencer West LLP.
Hilesh Chavda, partner at law firm Spencer West LLP added:
“Reform’s Britannia Card is interesting. It is not as outlandish or out of the blue as some might like to say. It seems to be closely modelled on the Italian non-dom regime. The one-off fee, effectively a flat rate of tax on foreign assets, has been in place in Italy for a few years. The fee in the Italian regime is 200,000 Euros, so not far off that propose by Reform. Many are reporting Italy being a benefactor or people moving from the UK as a result of the non dom changes so there could be some interest, though the £250,000 will be too high for many who historically used the old non-dom regime. Determining the economics of this is complex however, Reform could drive the narrative on this issue as I suspect there are many who share the sentiments expressed by Nigel Farage and the Chairman of Reform.”
The so-called Britannia Card may ‘force the hand’ of Chancellor Rachel Reeves says James Ward, head of Private Client at Kingsley Napley, suggesting the government may choose to move ‘sooner rather than later’ on any decision to u-turn.
“This is an interesting proposal from Nigel Farage that is deliberately more generous than the current regime and, indeed, the rules before that. It would certainly help to make the UK more competitive than other countries and encouraging more wealthy individuals to base themselves in the UK again is what we need for a healthy economy. The 20 year IHT shield will be especially attractive given the punitive and unpopular changes Rachel Reeve has made on that front.
Curiously the Reform proposals do not cover current non-doms, who would also want to benefit from such a regime and so surely it should be extended to them.”
But there may be another way said Robert Brodrick, Private Client partner at Payne Hicks Beach who suggests
“If Rachel Reeves genuinely wants to boost growth and attract investment to the UK, she can avoid an embarrassing u-turn and introduce a new inward investment visa with a properly costed up-front investment and an annual lump-sum payment to satisfy worldwide tax liabilities – this needs to be a meaningful amount, but the system needs to be simple, and above all it should encourage people to bring their money into the UK.”
“Whilst Farage’s plan doesn’t seem to have been properly costed, Rachel Reeves could use this as a starting point for a new system to entice the wealthy to come back to the UK. Italy now charges an annual EUR200,000 for non-dom status. The US are also about to launch their own non-dom alternative called the Trump Gold Card with a much more significant $5 million up front payment.”
