Wealth Migration 2025: Why are millionaires moving out of the UK?

Supervised By: Hiroki Kazato

In recent global reports, the wealthy have been migrating out of their countries due to new economic policies and a preference for a more favorable tax environment. The leading country projected to lose the most millionaires is said to be the United Kingdom in 2025. 

The start of the new tax year for the UK brings about changes for taxpayers in an effort to raise the country’s revenue for public spending, which is significant for structural reforms. But for the wealthy, these changes are not necessarily appealing enough to choose to stay. 

While regions like the UAE and USA are attracting greater wealth, Japan is emerging to be a significant part of a broad wealth migration trend in Asia. More high-net-worth individuals (HNWIs)  are making their way into Japan, especially in areas like Tokyo, Osaka, and Kyoto. Approximately over 600 HNWIs are projected to enter the country, seeking economic stability from the challenges brought by their home countries. 

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In this article, we will delve deeper into why millionaires are migrating out of the UK and how this wealth migration affects the economy of countries. 

A Deep Dive: Why are the wealthy moving out of the UK?

According to the Wealth Migration Report by Henley and Partners, over 16,500 millionaires in the UK are said to be migrating outside of the country. What is defined as a millionaire in this report is an individual who owns liquid assets valued at over 1 million dollars – not necessarily dollar assets. 

It’s no secret that the current tax environment in the UK is driving away the wealthy, especially due to the changes in capital gains, inheritance tax, extra stamp duty rates or SDLT, and the end of the non-dom status. Speculations also arose that the wealth tax will also be implemented for high-net-worth individuals to create balance in wealth in the country. Some deem it essential and are willing to cooperate, but other wealthy residents are choosing to flee to escape the tax burden. 

As of April 2025, the following tax changes have been implemented according to the UK’s Chartered Institute of Taxation, highlighting those related to real estate ownership. 

1. Higher stamp duty land tax

Thresholds have reverted to their previous levels prior to 2022, with £300,000 for first-time buyers and £125,000 for others. 

2. Higher interest rates on late payments for taxes

The HMRC charge for late payment of taxes increased by up to 8.5%, altering from the base rate of the Bank of England, with an additional 2.5% to the base rate plus 4% for most taxes. 

3. Changes to capital gains tax relief

The main capital gains tax rose from 10% and 20% to 18% and 24% respectively, balancing them with residential property rates. 

4. Landlords lose access to allowances

Advantages for furnished holiday lettings (e.g. Airbnbs and other accommodations), such as availability of capital allowances and capital gains tax reliefs are scrapped and no longer upheld.

Read more in-depth about where UK millionaires are moving to:  

🔗 Where are UK millionaires migrating to? Japan is among the top destinations 🔗

Does Wealth Migration Matter?

The short answer is: yes. Having many millionaires move out indicates economic and political instability within the country. This is why we could see spikes in wealth migrations after big elections. Moreover, the departure of millionaires from a country can do harm to its local economies as it could reduce investment and can weaken high-end job-creating fields. 

Having millionaires in a country is beneficial, not only because of the taxes they pay, but mostly because of the jobs they create. It can be through the businesses they set up or through sectors  that are highly reliant on them such as property, wealth management, and luxury goods and services. Although an influx of millionaires can bring inflation to real estate prices, when they leave, the fallout has a greater effect on the country’s economy. 

Common Motivations for Millionaires to Move 

High-net worth individuals relocate due to various reasons. The most common are safety and security, work and business opportunities, standard of living, and most importantly, taxes. The most highlighted driver of wealth migration is the tax differential between countries. The main taxes they consider the most are capital gains tax and estate duty. 

Top destinations where millionaires migrate to usually do not impose estate duties or capital gains tax. If they do, the rates are relatively lower compared to most countries. 

In Asia, Japan is the 3rd most attractive country for millionaires to migrate to due to factors like   standard of living, great healthcare system, safety and security, and continuous development of its technology sector. The main competition between the regions falls on the tax differences. Although other countries have more tax-friendly environments, Japan’s asset security is very reliable, making high-net individuals choose Japan even with slightly stricter rules. 

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