A report has found that a significant number of UK investors – including property owners – are now looking to transfer their assets out of the country. Tax changes outlined in the autumn budget and rising mortgage rates are two factors driving this trend.
According to a survey by asset management firm deVere Group, 42% of people with financial assets in or ties to the UK are seeking to move their assets out of Britain and into more tax-friendly jurisdictions, such as Italy, Portugal and Dubai.
Impact of the autumn budget
The company, which surveyed 600 individuals worldwide, highlights the autumn budget as a key factor driving this trend.
The budget outlined changes including higher capital gains tax, inheritance tax revisions affecting pensions, the abolition of non-domiciled tax status and increased national insurance contributions.
Nigel Green, CEO of deVere Group, called the budget “a game-changer for anyone with financial ties to the UK. The poll shows a remarkable increase in the number of individuals seeking to reposition their wealth abroad. This is not a knee-jerk reaction – it’s a strategic response to an environment that has become increasingly hostile to wealth and investment.
“[the removal of the non-domiciled tax status] sends a strong signal that the UK may no longer be the tax-friendly hub it once was. For those with property, business interests or pension plans tied to the UK, this represents a significant shift in financial risk,” Green added.
Many UK investors are looking to transfer their assets out of the country
Where are UK investors transferring their assets to?
UK investors are exploring tax-friendly locations like Italy, Switzerland, Dubai, Portugal and Malaysia to secure their financial future.
“These jurisdictions are being actively explored for their more favourable tax regimes and wealth preservation opportunities,” says the deVere CEO. “DeVere’s global offices report a surge in inquiries, particularly from individuals seeking to establish residency or shift financial assets to these locations.”
“The ripple effects of these changes are expected to extend beyond high-net-worth individuals,” he adds. “Middle-income families with property or pensions are also feeling the strain, as the increased tax burden threatens financial stability and long-term planning.”
Mortgage concerns adding to investor fears
Rising mortgage rates are another major concern for investors. Rates were expected to fall this year, but the recent sell-off in the UK government debt markets – caused by inflation worries and high public borrowing – could mean borrowing costs remain higher for longer.
The resulting increase in swap rates – used by lenders to price mortgages – has sharply raised borrowing costs. Two-year sterling interest rate swaps climbed from under 4 percent in mid-September to over 4.5 percent.
Summary
The UK’s autumn budget has triggered a surge in investors moving assets abroad, due to tax changes and rising mortgage rates. Many UK investors – including property owners – are looking to more tax-friendly countries like Italy, Portugal and Dubai.
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