The UK is expected to see a net outflow of 3,200 high-net-worth individuals in 2023, according to a new report.
This will make the UK the third-biggest loser of millionaires across the world this year.
It is also double the net exodus of 1,600 millionaires seen in 2022, according to the report from consultancy firm Henley & Partners.
The UK’s peak net outflow year was 2017, following the Brexit referendum in 2016. Prior to this, the country enjoyed net positive inflows of HNWs.
Professor Trevor Williams, former chief economist at Lloyds Bank Commercial, said: “Whatever one may think about the merits of Brexit, this cohort is voting with its feet.
“Coupled with the policy change to remove permanent non-domiciled taxpayer status, Brexit has made the UK less hospitable and welcoming to HNWIs. It’s now harder for them to move between the UK and EU countries. And evidence shows that the UK’s share of inward investment into Europe has declined since it left the EU, with Germany and France benefiting.”
Australia is expected to attract the highest net inflow of HNWs in 2023 at 5,200.
The country expected to see the highest number of HNWs leaving is China, with a net loss of 13,500.
Dr. Juerg Steffen, CEO of Henley & Partners, said there’s been a steady growth in millionaire migration over the past decade, with global figures for 2023 and 2024 expected to be 122,000 and 128,000, respectively.
He said: “In general, wealth migration trends look set to revert to pre-pandemic patterns this year, with Australia reclaiming the top spot for net inflows as it did for five years prior to the Covid outbreak, and China seeing the biggest net outflows as it has each year for the past decade. The notable exceptions are former top wealth magnets, the UK and the US.”
The figures are based on HNW individuals who stay in their new country for over six months a year and are rounded to the nearest 100.
