The majority of Britain’s ultra-wealthy individuals are actively weighing up whether to leave the country, driven not so much by the level of taxation but by what they see as a government incapable of providing a stable fiscal framework.
A survey of 200 multi-millionaires, each with a personal fortune of at least £50m, carried out by accountancy firm BDO, found that two-thirds had considered relocating over the past twelve months. The most striking finding, however, was the reason: 42 per cent pointed to inconsistent tax policies as the principal factor behind their deliberations, while just 18 per cent cited high tax rates alone.
The distinction matters. Britain has long taxed at rates comparable to or above those of its European neighbours, yet the ultra-rich have historically stayed put. What appears to have shifted the calculus is a succession of policy reversals and threatened reforms under Labour, particularly around inheritance tax and capital gains tax, that have left wealthy individuals unable to plan with any confidence.
Elsa Littlewood, a tax partner at BDO, said that many of those considering departure would prefer to remain but feel unable to manage long-term wealth planning against such an unpredictable backdrop.
Since Labour took office, a string of high-profile departures has underlined the trend. Hedge fund manager Michael Platt relocated his family office to Dubai. Norwegian-born shipping magnate John Fredriksen put his £250m Chelsea townhouse on the market. Richard Gnodde, formerly Goldman Sachs’s most senior banker in Europe, moved to Milan, whilst brothers Ian and Richard Livingstone shifted their primary residence to Monaco. Indian billionaire Lakshmi Mittal, a British resident for nearly three decades, also moved to Dubai, as did Egyptian businessman Nassef Sawiris.
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