Britain is becoming a less attractive location for wealthy individuals, according to a report by the migration consultancy Henley & Partners. Tax reforms, fiscal uncertainty, and policy changes are prompting wealthy families in the UK to reconsider their residency options, the firm stated.
Henley & Partners, which assists high-net-worth individuals in securing visas and relocating, noted a significant shift in client origins. Britain has moved from being the twentieth-largest source of new clients in 2018 to the fifth-largest currently. The report, titled 'Millionaires on the Move,' attributes this change to the abolition of the non-domiciled tax status, modifications to inheritance tax, the closure of the investor 'golden visa' program, and a broader climate of fiscal and policy unpredictability.
Britain is now listed among five countries, including Germany, Norway, South Korea, and France, where wealthy residents are reportedly contemplating relocation. Stuart Wakeling, managing partner at Henley & Partners UK, commented that Britain faces greater competition for globally mobile families than a decade ago, with destinations such as Portugal, the United Arab Emirates, and Singapore actively enhancing their offerings.
"On the one hand, a series of tax and policy changes have prompted wealthy families already living in the UK to reassess their long-term plans," Wakeling stated. "On the other, the closure of the Tier 1 Investor Visa removed one of the country's principal routes for attracting international entrepreneurs and investors."
Douglas McWilliams, founder at the Centre for Economics and Business Research, suggested that high-net-worth migration can serve as an indicator of economic policy effectiveness, noting, "If wealthy people are leaving a country en masse, you can be reasonably sure that the country's economic policy isn't working."
Recent fiscal measures have contributed to the reassessment. In November 2025, tax hikes were announced, including a new mansion tax and increased income tax rates on property and dividends. Properties in England valued above £2 million could face a council tax surcharge ranging from £2,500 to £7,500. In 2024, the Chancellor introduced approximately £40 billion in tax increases.
Anita Wright, a chartered financial planner at Ribble Wealth Management, described the cumulative effect of these changes—scrapping the non-dom regime, bringing foreign assets into inheritance tax, the mansion tax, and higher rates on rental income and dividends—as sending a message that "you are a target."
Beyond taxation, unpredictability in policy is a significant deterrent. Nouran Moustafa, practice principal at Roxton Wealth, explained, "The wealthy are not all packing bags because they dislike paying tax. Many accept tax. What they dislike is unpredictability. When Dubai, Italy, Switzerland and other jurisdictions offer clearer planning, the UK starts to look less competitive."
Tony Redondo, founder of Cosmo Currency Exchange, warned that if Britain continues to disincentivize wealthy individuals, a "brain drain" of talent could worsen. He identified the dismantling of the non-domiciled tax status as a primary catalyst, removing a key structural advantage for international capital. Bringing offshore trusts into the inheritance tax net, alongside capital gains volatility and tighter carried interest rules, could create significant multi-generational exposure. Redondo added that the departure of the top 1% of income tax contributors, who account for roughly 30% of all income tax, could lead to structural deficits requiring public service cuts or increased burdens on the middle class.
Destinations gaining appeal include Singapore, Italy, Switzerland, Greece, Hong Kong, and New Zealand. Singapore's attractiveness is reportedly bolstered by its political stability, strong institutions, and deep capital markets, according to Henley & Partners. The Cayman Islands, Cyprus, the Netherlands, Portugal, and Bermuda are also noted as popular choices.
Portugal is highlighted for offering more space for equivalent investment compared to luxury benchmarks in London, Paris, New York, and Dubai, with strong capital appreciation potential. Its appeal is further enhanced by EU membership benefits, a stable jurisdiction, and robust global links. Italy is noted for its flat-tax regime for new residents, favorable inheritance tax framework, and access to the EU market, with Milan emerging as a financial center.
The Gulf region, particularly the UAE, has shown resilience. Henley & Partners recorded a 41% increase in inquiries from UAE-based individuals and a 29% rise in applications for alternative residence or citizenship in early 2026 compared to the previous quarter. Justin Alexander, a director at Khalij Economics, cited the region's long-term appeal, underpinned by low taxation, strong connectivity, high quality of life, and increasingly sophisticated financial services.
Henley & Partners' analysis considered factors such as tax treatment, the rule of law, quality of life, investment opportunities, and geopolitical stability. The firm observes that many wealthy individuals are now pursuing "building sovereign portfolios" of rights, citizenships, investments, and business interests across multiple jurisdictions, challenging the historical assumption of the wealthy being a fixed asset rooted by local ties and limited mobility.