Are the Super-Rich Leaving London? Tax Reforms Could Spur Wealth Exodus

31 May 2025

Charlie Mullins of Pimlico Plumbers / Photograph: Victoria Jones/PA

In the wake of recent tax reforms implemented by the UK's Labor government, a growing number of wealthy individuals are reportedly leaving London. The changes, aimed at boosting public finances, have included the elimination of long-standing tax privileges for non-domiciled residents and cuts to inheritance tax breaks. While these measures are projected to raise £12.7 billion over five years to support public services, critics argue that the flight of high-net-worth individuals may ultimately harm the economy.

Business figures such as Charlie Mullins and Alfie Best have cited an unfavorable tax and regulatory environment as their reason for relocating to low-tax jurisdictions like Monaco, Spain, and Dubai. Estimates suggest this could diminish the UK’s tax base, with institutes warning that if even a quarter of non-doms leave, projected revenue gains could vanish.

Despite signs of wealthy property owners selling homes, experts note increases in American buyers and stress that lifestyle considerations also play a significant role in relocation decisions. The Sunday Times Rich List has recorded a drop in the number of UK billionaires, further reflecting the shift, though analysts argue that many wealthy individuals still prefer London’s overall offerings despite the higher taxes.

The Labor government's tax reforms have sparked a debate about the balance between fiscal responsibility and economic competitiveness. As the UK navigates these changes, the long-term impact on London's status as a global financial hub remains to be seen.