Millionaires leaving UK- are you concerned?

[anonhop]

Read today that 10,800 millionaires left the UK in 2024 which is equivalent in tax take for the government to half a million average tax payers. I don't think that factors in their reduced reliance on public services either.

Do you think this is concerning in terms of investment & spending in our economy?

I understand the moral arguments for the wealthy paying more tax but if so many are leaving, will it practically leave us worse off?

Curious to see what people think

Bye bye

There’s a lot of Londoners who are asset rich but cash poor. Eg have a home worth £1m+ but earn a much more modest salary.

Housing is too expensive vs income & there is big intergenerational inequality. more young people will emigrate.

@Snorlaxo are these counted as millionaires for the purposes of these stats do you know? I was assuming £1m in more liquid assets (excl primary residence and pension) but I don't know why I think that!

Even so, a mortgage free person in London in a £1m home is likely someone who is earning a good amount (to be able to pay off a mortgage on a £1m home!) and spending a lot in the economy (as they earn a lot and don't pay a mortgage) so them moving abroad would be a bad thing in terms of tax.

the numbers are very alarming and people should be worried but they will be too stupid / bitter / tax the rich etc to be worried. I have seen other sources and there IS huge flight of wealth (so far c75% of billionaires).

I employ people in a small business and am considering redundancies as frankly it's a massive ball ache that creates huge costs and ongoing burden and the cost of doing business versus what I actually take out is starting not to be worth it.

@wipeywipe we need both! Some big high net worth individuals to be paying taxes and crucially investing in the economy and creating jobs, so that average earners can earn more, create growth & pay more themselves

Plus the council tax would require a big salary or huge independent income.

It's been a trend for the last few years and seems to be accelerating. Even those with lower incomes (but still far higher than average) seem to be having itchy feet.

I first noticed it due to IR35 where lots of my IT consultant clients moved to work abroad, often for the same "employer" typically UK banks or financial services firms, but escaped the clutches of HMRC's IR35 by moving abroad but working from their new "home". So still earning money from UK firms but not paying UK taxes, not buying stuff in the UK (so no VAT, etc), etc.

With Tories excluded 3 million freelancers and self employed from covid support and now Labour hammering small businesses with the NIC rises, it's really not a good time to be self employed/freelancing in the UK.

Lots of higher earners are mobile and can work from anywhere due to the internet. It's not the time to be clobbering them for higher taxes when they can easily move and live abroad.

@curious79 yeah I think that mentality really isn't helpful. Some people seem to have a "good riddance" mindset but the only people it's hurting are those left behind!

Exactly. Labour are just pandering to the masses with politics of envy and completely incapable of seeing the inevitable consequences of their policies which will be a disaster for the country.

@Badbadbunny this is really interesting thank you- I didn't know about some of that.
We really need to be incentivising small business!

@Badbadbunny do you think Labour aren't concerned about the exodus or think they are too ideological/don't care about the effect it'll have?

Aren't they just non-doms so no tax loss anyway?

So, the conservatives were in power for half of last year. The election wasn't called till June. Looks like Rishi's crew was responsible for this.

I own one business and have an interest in our family business. I am not investing anything into either under the current economic climate,and am raising my prices. As the family business has 3x partners in their 80's,I'm saving all the money I can to pay the IHT that we were previously exempt from. Speaking to others in the industry,and our suppliers,everyone is doing the same,no further investment,only buying the essentials to keep running.
DD1 graduated in the summer and was in the process of being accepted onto a trainee scheme at another company. The budget put a stop to that,they are not recruiting any more. It's the same all over, recruitment freezes in so many industries. She's currently working in a pub so that she at least has a job.
I knew things would be bad under this government,but I didn't quite realise how bad it would be.

@NormalAuntFanny I dont think they're all non Doms at all.
& NDs still invest here, spend in our economy etc which generate significant tax receipts

Sadly I’m thinking they just don’t have a clue what they’re doing.

It is worrying and it's reported in multiple sources that since Labour came to power one millionaire has left the UK roughly every 45 mins. That will have a major impact on tax take. But then, with Labour's 'soak the rich' and 'politics of envy' policies, why wouldn't they leave? Rich people have choices and they will vote with their feet if the country they're living in becomes less desirable, particularly those with more than one passport.

@mibbelucieachwell I think from January 2024 we all knew labour were coming in very soon and a lot of people left in anticipation of that.

we are not multi millionaires but we are in a position where our property is worth a few million (no mortgage), our pensions are maxed out and we both earn a few hundred thousand. We have a good level of savings too. In total probably about 4-5 million so low level "millionaires" if we liquidised it all.

We have spent time thinking about leaving. we pay an incredibly high level of tax.

@Feckedupbundle so sorry to hear how you've been affected. I wouldn't want to be a business owner right now

I know a woman who bought her house on a maths teacher salary and by the time her son inherited it, similar properties in the area were sold for £2m+

Plus the council tax would require a big salary or huge independent income.

CT in London can be pretty cheap even on million plus houses

when you start a small business and employ others you take on huge risks. I'm sacrificing my own pension to keep on paying people and their pensions. I'll be up for significant redundancy payouts if I need to make these changes but I am now feeling why am I doing this. Certainly changes to the dividend regime (conservatives) were behind me not bothering with further expansion.

Are you?

When any media source is completely predictable its content then I do not look to it as a reliable source of information - like a stopped clock it will occasionally be right, but the information it gives out tells you nothing useful.

As for millionaires, I am 50 years old and millionaires have been moving themselves and their money around for all that time. Since they have good accountants and revenue processes can't keep up with them, it honestly makes little difference.

@namechanger986 I can see why. It's unrealistic to expect people to be happy paying such extremely high taxes while they're spent so badly!