Rachel Reeves’ Budget last October has unleashed an unprecedented response, with 42% of those with financial assets in or ties to the UK actively now seeking to transfer their wealth and assets out of Britain and into more tax-friendly jurisdictions, according to a new survey.
This comprehensive survey by independent financial advisory and fintech deVere Group, conducted the week before Christmas among 600 individuals worldwide, underscores the widespread concern over the sweeping fiscal measures announced in Labour’s first Budget.
The survey’s findings reveal a seismic shift in attitudes toward the UK’s financial environment.
Families, business owners, and investors with UK financial connections are exploring options to mitigate the impact of the new tax landscape, which includes higher capital gains and inheritance tax changes on pensions, the abolition of non-domiciled tax status, and increases in National Insurance Contributions (NIC).
“These measures, designed to address fiscal challenges, are perceived as a direct threat to wealth preservation and financial planning. The policies outlined in the Budget are a game-changer for anyone with financial ties to the UK,” said Nigel Green, CEO of deVere Group.
“The poll shows a remarkable increase in the number of individuals seeking to reposition their wealth abroad. This is not a knee-jerk reaction — it’s a strategic response to an environment that has become increasingly hostile to wealth and investment.”
Among the most popular destinations for those reassessing their financial strategies are Italy, Switzerland, Dubai, Portugal and Malaysia.
“These jurisdictions are being actively explored for their more favourable tax regimes and wealth preservation opportunities. deVere’s global offices report a surge in inquiries, particularly from individuals seeking to establish residency or shift financial assets to these locations,” Green said.
“The abolition of the long-standing non-domiciled tax status has emerged as a pivotal concern. Historically, this status has attracted significant investment and talent to the UK, fostering a dynamic business environment.
“Its removal sends a strong signal that the UK may no longer be the tax-friendly hub it once was. For those with property, business interests, or pension plans tied to the UK, this represents a significant shift in financial risk,” noted the deVere chief executive.
Pensioners hurt most
He explained that the heightened capital gains tax (CGT) and inheritance tax on pensions further exacerbate the situation. These changes disproportionately affect individuals who have built up assets and are relying on their financial plans for security.
“The increase in CGT rates is set to discourage investment, while the inheritance tax changes on pensions create additional complexities for families planning to pass on wealth to loved ones efficiently.”
Further compounding the issue is the Budget’s increase in employer National Insurance Contributions. Business leaders, particularly those running small and medium-sized enterprises, have voiced concerns that this “effectively amounts to a jobs tax.”
The resulting higher payroll costs are likely to dampen hiring efforts and redirect investment toward automation, “potentially stifling job creation during a critical period for economic recovery.”
The deVere CEO added that the Budget, “appears to prioritise immediate fiscal gains over long-term economic growth. By imposing higher taxes on wealth and on business, the government risks driving away the very individuals and enterprises that contribute significantly to the UK economy.
“The ripple effects of these changes are expected to extend beyond high-net-worth individuals.
“Middle-income families with property or pensions are also feeling the strain, as the increased tax burden threatens financial stability and long-term planning. The financial policies introduced in this Budget have created an urgent need for proactive wealth management strategies to safeguard assets and maintain financial security.”
Strategies such as rebalancing investment portfolios, leveraging tax-efficient financial instruments, and initiating early inheritance planning are being actively recommended to those affected.
Acting swiftly is essential to minimise exposure to the heightened tax liabilities and to explore opportunities in more accommodating jurisdictions.
The departure of wealth and talent from the UK could have profound consequences, warned Green.
“Historically, high-net-worth individuals and businesses with UK ties have played a crucial role in supporting the nation’s economic growth through taxation, investment, and job creation. The erosion of this base risks undermining the UK’s global reputation as a centre for business and prosperity.”
He concluded that this Budget marked “a pivotal moment and now people are reassessing their legitimate options.
“It’s not just about taxes — it’s about the message being sent to those with financial assets in and financial ties to the UK. Increasingly, that message is: ‘You’re not welcome here’.”
