UK millionaires are fleeing the country at a rate of one per hour — around 9,500 in 2024 — more than double the number in 2023.
According to analysts, the main driver is the Labour government's decision to abolish the non-domiciled tax regime, which previously allowed wealthy people to avoid paying UK taxes on foreign earnings.
"Our entrepreneurs and businesses are fleeing this socialist government's tax raid in droves," said Andrew Griffith, Shadow Business Secretary.
"This research shows that Rachel Reeves's Marxist maths has put the economy in real danger of drowning in Labour's tepid bath of decline. Unless she changes course, every taxpayer will be getting soaked as a result."
The tax change, effective in April, means those who have lived in the UK for over four years must pay taxes on their global income, prompting many to reconsider residency.
There's also concern over potential increases in capital gains tax and changes to inheritance tax, particularly on worldwide assets, making it less desirable to remain in the UK.
Economists say the exodus is not merely about tax avoidance, but is also driven by a other factors including Brexit's lingering effects, the highest tax burden since the post-Second World War era, and growing concerns over crime, healthcare, and education quality in the UK.
"These millionaires are not just looking for tax havens, they're seeking stability, security, and better life quality," said Eleanor Finch, with the London School of Economics.
"Places like the UAE, Italy, and Switzerland are not only offering tax incentives but also a lifestyle that's increasingly appealing."
Business leaders are concern over the impact on the UK's economy.
"The departure of these individuals means not just a loss in tax revenue but also a brain drain of sorts. We're losing investors, philanthropists, and entrepreneurs," said Michael Harrow, CEO of a leading UK investment firm.