London has witnessed a significant departure of its wealthiest residents, second only to Moscow, according to recent figures.
An annual global wealth report indicated that the capital saw 11,300 millionaires relocate over the past year, including 18 individuals worth over £78 million and two billionaires.
This decline is primarily attributed to tax increases under successive Conservative and Labour governments, ongoing economic instability post-Brexit, and the depreciating pound.
The data was gathered prior to the recent downturn in the stock market, triggered by US President Donald Trump’s introduction of new trade tariffs.
Further impacting the migration of wealth, Rachel Reeves’ policies targeting non-domiciled residents — those living in the UK but taxed abroad — have led to an exodus of millionaires.
According to the Adam Smith Institute, these changes could potentially cost the UK economy over £10 billion annually in the next decade.
The research, carried out by New World Wealth for Henley & Partners, measures wealth based on liquid assets, excluding real estate.
London, now home to 215,700 millionaires, is one of only two cities among the top 50 globally to have fewer wealthy residents than ten years ago, alongside Moscow, which has experienced a 25% drop due to Western sanctions and political turmoil.
Despite the exodus, London remains the fourth most expensive city worldwide for living costs, trailing only behind Hong Kong, New York, and Monaco in terms of property prices per square metre.
Historically a prime destination for affluent migrants, London has attracted wealthy individuals from Europe, Africa, Asia, and the Middle East from the 1950s until the early 2000s.
However, Andrew Amoils, Head of Research at New World Wealth, notes that high UK taxes relative to other nations have driven many to relocate to cities like Paris and Dubai.
He highlighted that the UK’s capital gains tax and inheritance tax rates are among the highest globally, deterring wealthy entrepreneurs and retirees from settling in the UK.
