A report reveals that a millionaire left Britain every 45 minutes in 2024 following the Labour Party’s tax reforms.
Following the Labour Party’s ascension to power last year, a significant exodus of millionaires from the UK is underway, The Times reported on Friday. This mass departure is attributed to the government’s decision to abolish the non-domicile tax regime, which previously offered substantial tax advantages to wealthy individuals residing in Britain.
The UK’s former tax system for non-domiciled residents allowed them to pay taxes only on income earned within the country, exempting global earnings. This arrangement attracted wealthy individuals, with approximately 74,000 non-doms in the UK in 2023.
The Labour government’s shift to a residence-based tax system has triggered a considerable impact. Data from New World Wealth, shared with The Times, indicates a net loss of 10,800 millionaires through migration in 2024—a 157% surge from 2023.
The newspaper clarifies that the actual number of departures is likely higher, as the figures account for both those leaving and arriving.
This translates to a millionaire departing the UK every 45 minutes post-Labour’s election victory last July, with many relocating to Italy, Switzerland, and the UAE, according to the research. The impact is particularly pronounced among high-net-worth individuals, with 78 centimillionaires and 12 billionaires leaving last year.
The Office for Budget Responsibility projected in October that the tax reforms would cause 12-25% of non-doms to leave. The Times points out that a quarter of non-doms departing would severely damage the economy. Each non-dom contributed an average of £800,000 ($970,000) in VAT annually, representing significant investment and high-end business patronage.
While the government predicted £2.5 billion in annual revenue gains, Oxford Economics cited by The Times estimates a £1 billion annual loss to the Treasury due to reduced tax revenue.
Labour maintains that the increased tax revenue will finance initiatives like free school breakfasts, improved hospitals, and dental care. In July, Chancellor Rachel Reeves highlighted a £22 billion budget deficit inherited from the previous Conservative government.