The UK is seeing far greater exodus of wealth than it is attracting under the Foreign income and gains (FIG) regime, according to Utmost Wealth.
The insurance-based wealth solutions provider has already flagged the accelerating wealth exodus, with the Henley & Partners’ annual Wealth Migration Report, predicting that the UK will haemorrhage 16,500 millionaires over the course of 2025, up from 9,500 in 2024, despite the changes to the non-dot regime .
Utmost said that while the Financial Times recently reported that opportunistic buyers from the UAE and long-term UK expats have been buying prime London property, with some even looking to move back to the UK to take advantage of the new four-year Foreign income and gains (FIG) regime, a return home by HNW expats was “far from the prevailing trend.”
Marc Acheson at Utmost Wealth Solutions, said: “Typically, the expats that are looking to return are those that are more elderly and wish and need to be nearer family. For this cohort, the new FIG regime is attractive as they have four years tax free on overseas income and gains and are IHT exempt for 10 years.
“Although recent data on the number of HNWs and non-doms that have already left the UK has come under scrutiny, the feeling on the ground is that vast amounts of wealth have already left and is leaving the UK. We believe the OBR projections of 25% of non-doms with trusts leaving may be conservative and those leaving are extremely wealthy.
“With speculation mounting as to what further taxes the Chancellor may introduce at the Autumn Budget to plug the fiscal hole, the UK’s reputation as a competitive and attractive jurisdiction for wealth will continue to be at risk.
“As a result, we are likely to see far more wealth exit the UK than arrive including UK domiciled individuals who can be exempt from IHT after 10 years of non-UK residency.”
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