As many as three in 10 (30%) high net worth individuals in the UK would consider leaving the country, up from one in four a year ago, new research from Saltus shows.
The latest Saltus Wealth Index Report, based on responses from 2,000 UK adults with at least £250,000 in investible assets, found 8% are actively exploring whether to leave the UK permanently within the next 12 months. A further 22% say they could consider it in future.
Those with the greatest wealth are the most likely to be looking seriously at a move. Among respondents with a net worth of at least £5 million, one in six (15%) say they are actively considering leaving the UK permanently within the next year, while a further 29% are considering it more widely.
Saltus said younger respondents are also more likely to be considering their options, with 14% of those under 25 actively considering a move and a further 40% stating they could consider it in future. That compares with 91% of over-65s who say they have no plans to leave.
Personal factors were found to be the most commonly cited reason for considering a move abroad (35%), followed by financial reasons (31%), political reasons (19%) and cultural reasons (15%). Tax was found to feature heavily, with 18% of all respondents saying they would consider changing their tax residency or moving abroad if CGT were aligned with income tax rates.
The findings come amid a fall in confidence in the UK economy. Confidence among HNWIs has fallen to 56% from 66% a year ago, while 40% now identify tax changes as a key risk to their wealth. Respondents are particularly concerned about further pension changes (70%) as well as a potential 10% tax on estates and further changes to inheritance tax (67%).
Mike Stimpson, partner at Saltus, said: “People do not uproot their lives over a single tax announcement, and our research does not suggest that Britain’s wealth creators are heading for the exits en masse.
“What it does show, however, is a marked change in the way people are thinking. Leaving the UK has moved from a distant idea to something that a growing minority are actively testing against their family, financial and personal circumstances.
“The important point is that confidence in the UK’s economic direction has weakened, and greater certainty over the rules that affect wealth would help families make decisions without feeling pushed into irreversible choices.”
When asked about the preferred destination for HNWIs considering leaving the UK, 33% say a country within the European Union would be their preference. Spain and the United States top the list of individual countries with 14% of respondents each, followed by the United Arab Emirates (10%), Australia (8%), and Canada and Portugal (both 5%). Just under one in 10 (9%) HNWIs considering moving say they are undecided about their preferred location.
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