Halting the UK wealth ‘exodus’

A powerful narrative has taken hold of public debate in recent months, suggesting that high net worth individuals (HNWIs) are fleeing the UK in record numbers as part of a ‘wealth exodus’. 

It is true that the UK’s tax burden on our wealthiest citizens has reached its highest point since the late 1940s, driven by a combination of higher capital gains tax rates, changes to inheritance tax reliefs, and a growing push for the introduction of a ‘wealth tax’. As a consequence, the Henley Private Wealth Migration Report 2025 forecasted that the UK will experience the largest net outflow of HWNIs globally, with a projected loss of 16,500 millionaires. 

This and other such predictions has formed the basis of countless reports promoting the idea that a wealth exodus is now well underway. However, these claims have since been the subject of significant debate and conflicting reports, including a review published by the Tax Justice Network, which claimed that the exodus generating 30 news pieces a day in 2024 is actually non-existent.

Sentiment versus action

Concrete data on the wealth exodus remains elusive, and it now seems an important distinction must be drawn between the sentiment among wealthy individuals and the translation of that sentiment into concrete action. The wealth exodus narrative may continue to reign supreme, but the reality is more nuanced, particularly among the nation’s most successful entrepreneurs. 

Through extensive consultation with UK entrepreneurs, we have found that, for most, the primary concern isn’t ‘squirrelling away their wealth’ from these increased tax liabilities, but how they will continue to create a positive impact on society using their wealth in the current environment.

The notion that the wealthiest entrepreneurs are leaving the UK solely to save on taxes is a significant oversimplification. These are individuals who have already achieved immense success, and what truly troubles them is the loss of opportunity to use their wealth to create a meaningful impact and pursue new, entrepreneurial possibilities.

Despite a prevailing desire to remain in the UK and contribute to its economy, which may explain why the predicted wealth exodus has not fully occurred, there are undeniable signs of a growing loss of confidence. The UK needs to make significant changes to prevent a steady leak of its most successful entrepreneurs.

Still at risk 

The UK cannot afford to be complacent in its response to some of the country’s most valuable creators of wealth, who may soon decide the UK is no longer a suitable place to live, start a business, sell a business or build a lasting legacy from the wealth they have accumulated. 

Entrepreneurs, by their very nature, are risk-takers, motivated by the desire to make a lasting impact on society and create a legacy beyond financial success alone. Yet, in exchange for this excessive risk, they should have the opportunity to benefit from outsized returns on their investment into business, society and the economy. Our consultation shows that most have no issue with paying their fair share of taxes, as they want to see the economy thrive. What they do want is for their significant contributions to the UK’s success to be recognised. 

We spoke with one business owner who wanted to sell part of their company and reinvest the proceeds into the remaining UK business. This would create new jobs, grow revenue and increase tax contributions. However, this clear desire to support the UK economy is stifled by a tax regime that fails to reward the risks entrepreneurs take, forcing them to reconsider relocation in order to expand. 

Most also indicated that competitive taxes upon exiting their company or realising liquidity would help to diminish this tension between wealthy entrepreneurs and the UK tax regime. This used to be the case with the Entrepreneur’s Relief threshold, but this benefit has been eroded to the point where Business Asset Disposal Relief is no longer competitive or reflective of the risks taken by entrepreneurs.

Another entrepreneur we interviewed, who is preparing for a major liquidity event, made a crucial point: the resulting UK tax liability would be so high that it would effectively eliminate their ability to reinvest in their own company, halting its growth and potential to create jobs.

Above all, our wealthy entrepreneurs require long-term stability to set out new, innovative strategies for their continued investment in initiatives with wide-ranging benefits for society. 

Rebuilding confidence

So, are wealthy families leaving the UK? Some certainly are, but the narrative that this is a widespread, tax-driven exodus oversimplifies the motivations of many of the country’s most valuable wealth creators. For UK entrepreneurs, the decision to stay is a balancing act, more than just the bottom line, but about opportunity, impact and a sense of being valued. 

To retain this vital group, willing to take risks and contribute to the economy, the UK needs to offer more than just a place to live after a successful career. It needs to foster an environment where their immense contributions are recognised and rewarded in a way that truly reflects the risks they take to build for the future.

Andrew Holder is managing director at Brades, a wealth management adviser for UK entrepreneurs