Do you get a payslip? Then according to the Chief Secretary to the Treasury, you won’t get a tax rise this autumn. This apparently isn’t enough to stop thousands of millionaires from leaving the UK, according to multiple sources.
According to Henley & Partners, a high net worth individual (HNWI, someone with liquid assets of $1million plus), left the UK every 45 minutes last year, adding up to around 11,000 millionaires, a 157% increase on 2023. The number is predicted to accelerate to 16,500 this year. And it’s not just the millionaires. The UK also lost 78 centi-millionaires and 12 billionaires.
Where are they going? Within Europe, Italy and Switzerland appear to be top choices, with Geneva and Milan particular favourites, being handily placed for traveling around Europe, with a flat tax of €200,000 on foreign income and with skiing, of course. Portugal offers a dynamic digital economy in cities like Lisbon and Porto, while Greece’s golden visa is one of the easiest to get. Dubai and the wider UAE is also proving popular, perhaps unsurprisingly since it has no income tax and residence based golden visa.
Interestingly, the UK is not alone, as France, Spain and Germany are also struggling to hold onto their HNWIs. However, the UK appears to be suffering the largest exodus
Why they’re going
New Labour governments tend to worry the wealthy, but with the country so short of money and a promise not to raise income tax, the Labour government elected on 4 July 2024 put several taxes in place that targeted the wealthy.
These included abolishing non-dom status for 74,000 non-domiciled people in the UK. A survey of 700 of them found that two-thirds intended leaving the UK, most citing the introduction of Inheritance tax (IHT) on their worldwide assets.
Some told Henley &Partners that there seemed a negative attitude to them, such as adding VAT on private school fees, or the inheritance tax increase on farmland. If nothing else, moving overseas is a good ‘Plan B’ – one incidentally that some high-profile US citizens are seeing the UK as offering too.
Now it seems that a wealth tax may be in the offing in the next Autumn Budget and maybe a ‘mansion tax’ too.
But while the idea of starting afresh abroad is exciting, there are complex financial and practical issues to consider before you make the leap.
This is not simply about packing a suitcase and booking a one‑way ticket. If your wealth is significant, every decision needs to be carefully structured to protect your assets, reduce unnecessary costs and ensure that your move leaves you in a stronger position, not a weaker one.
Understanding the tax landscape before you leave
Leaving the UK permanently does not automatically mean leaving your tax obligations behind. Depending on your circumstances, you may still be liable for certain UK taxes, including capital gains and inheritance tax.
Residency rules are complex. A single mistake in timing or planning could result in unexpected tax bills. This is why it is essential to take advice from a specialist well in advance of your move. Understanding how your current investments, properties and business interests will be treated in your destination country is just as important as knowing the rules you are leaving behind.
For example, the 25% lump sum that people over 55 can withdraw from their pension tax free in the UK is not necessarily tax free overseas.
Deciding whether to keep, sell or rent your UK property
Property is often a cornerstone of personal wealth, but what you do with your UK home can have long‑lasting effects. Some choose to sell and release equity to fund purchases abroad, while others prefer to rent their property out and maintain a foothold in the UK market.
Each option carries its own implications for tax, cash flow and long‑term strategy. Timing the sale or securing tenants can take longer than expected, so it pays to build in flexibility rather than relying on one fixed plan.
You may be taxed heavily in your new country on rental income received from the UK, while also coming under swingeing taxes against second home owners in the UK. Recent laws allow a local council to charge double council tax on a second property – although if rented out this will normally be paid by the tenants.
If you sell, there will be capital gains tax to pay on the increase in value from when it started being rented (not that looks in danger of being a great deal in today’s market).
Protecting your wealth across currencies
One aspect that many people underestimate is currency risk. When moving millions, even small shifts in the exchange rate can make a six‑figure difference to the money that ultimately reaches your account overseas. This is why a sophisticated currency strategy is critical. You can lock in rates for months in advance, target specific exchange rates to maximise your returns, or set up structured transfers to match staged property payments. Without this kind of planning, your move could cost far more than you anticipated.
Download your free guide to handling currency when you move overseas.
Diversifying your investments internationally
Relocating is also an opportunity to rethink how and where your wealth is invested. Many countries offer favourable regimes for new residents, including access to different markets, tax incentives and residency‑linked investment schemes.
Spreading investments across currencies and regions can also offer protection against economic changes in any one country. Before making any moves, it is worth exploring how these options fit into your overall financial plan.
Considering estate and succession planning in a new jurisdiction
Just because the UK may increase inheritance tax, it won’t necessarily mean that you will pay less overseas. Every country has its own rules on inheritance and succession. Some have forced heirship laws that dictate that you must leave a significant part of your wealth to your children, whether you want to or not.
Others impose local estate taxes that you may not have accounted for. Reviewing your will, setting up trusts or restructuring ownership before you leave can prevent difficult legal problems later and ensure that your wealth is passed on according to your intentions.
Planning the practical steps of your move
From securing the right visa to arranging international health cover and schooling, there is a long list of practical matters to address alongside the financial planning.
Setting up overseas bank accounts and establishing a clear picture of your future tax status will make the transition smoother. These steps are far easier to manage when you start them early, rather than trying to handle everything after you arrive.
Perhaps the most important step is surrounding yourself with the right experts. A move of this scale benefits from coordinated advice across tax, legal, wealth management and currency specialists. Bringing them into the conversation early allows you to plan as one team, avoiding gaps or conflicting strategies that could cost you dearly.
Final thoughts
Joining the growing number of high‑net‑worth individuals leaving the UK can open the door to exciting new opportunities. But without careful planning, the process can erode the wealth you have worked so hard to build. With the right guidance on tax, property, investment and currency strategy, you can protect your assets and start your new chapter with confidence.
If you are considering a move overseas and want to make sure every pound you have worked for goes as far as possible, talk to our team at Smart Currency Exchange. We can help you plan your transfers, lock in rates and give you certainty over your budget, wherever in the world you choose to go.
