UK sees wealthy departures as tax changes reshape the business landscape

Yesterday 11:45

By: Azzat Manal

UK sees wealthy departures as tax changes reshape the business landscape

The United Kingdom is facing continued departures among some of its wealthiest residents, with the combined fortunes of billionaires who have reduced or ended their ties with the country estimated at around $160 billion over the past two years, according to Bloomberg data based on the Bloomberg Billionaires Index.

The departures have largely involved internationally wealthy business figures who have been affected by changes to the UK tax system. Among those cited are Egyptian businessmen Nassim Sawiris and Mohamed Mansour, who have moved their bases away from Britain, with Sawiris relocating between Italy and the United Arab Emirates and Mansour returning to Egypt.

Their departures form part of a broader movement among high-net-worth individuals who have reconsidered their UK residence following changes to the tax treatment of internationally held wealth. Other wealthy residents have also reportedly moved to jurisdictions such as Monaco, Switzerland and the UAE.

The shift follows the UK government's decision to abolish the previous non-domiciled tax regime from April 2025. Under the new system, taxation is primarily based on residence, while qualifying new arrivals can benefit from a four-year regime covering certain foreign income and gains. The government has also introduced residence-based rules for inheritance tax.

The reforms were designed to make the tax system more consistent and ensure that long-term UK residents contribute tax on a broader range of their worldwide income and assets. However, they have also generated concern among internationally mobile investors and wealthy individuals who can choose between different financial centres.

The potential economic impact extends beyond tax receipts. London has traditionally attracted wealthy international residents who contribute to financial services, property, luxury retail and other high-value sectors. A sustained reduction in the number of wealthy residents could therefore affect parts of the premium property and consumer markets.

At the same time, the scale of the economic effect remains difficult to measure. Wealth leaving the country does not necessarily mean that all underlying assets or businesses are being transferred abroad, while tax revenues depend on individual residence, investment structures and the wider economic activity associated with high-net-worth individuals.

The UK government has defended its reforms as part of efforts to create a fairer and more sustainable tax system. The changes have nevertheless intensified debate over how Britain can balance higher tax revenues with its longstanding position as a major destination for international capital and wealthy entrepreneurs.