UK Faces Largest Single-Year Wealth Departure with 16,500 Millionaires Leaving Amid Non-Dom Tax Reforms, Says Chancellor Reeves

The United Kingdom is facing a record-breaking exodus of millionaires in 2025, with an estimated 16,500 high-net-worth individuals (HNWIs) expected to leave the country. This outflow is driven by recent policy changes, including tax hikes and reforms targeting non-domiciled (non-dom) inheritance tax on overseas assets. Chancellor Rachel Reeves is reportedly considering reversing the decision to charge inheritance tax on the global assets of non-doms amid concerns that the tax reforms are accelerating capital flight. Analysts and reports highlight that the UK is on track to suffer the largest single-year departure of wealth ever recorded, with estimates suggesting that £66 billion in assets could leave the country.

The phenomenon, sometimes referred to as "Wexit," is attributed to a combination of tax increases, policy uncertainty, and the lingering effects of Brexit. The exodus of wealthy individuals is anticipated to have significant fiscal implications for the UK, as the loss of these taxpayers could affect government revenues and economic stability. The trend has sparked debate among politicians and commentators about the impact of wealth taxes and the broader economic consequences of the current Labour government's policies.