The exodus puts Britain in a club of despotic regimes and emerging economies this year, with Russia particularly hard hit. Britain has seen a 1.6 per cent fall in the number of wealthy people over the past five years, the figures show, to 738,000.
About 15,000 wealthy Russians are expected to leave the country based on outflows this year as oligarchs feel the heat from Western sanctions. China and Hong Kong are also experiencing large numbers of departures, the data show.
Andrew Amoils, head of research at New World Wealth, said the end of loopholes and high taxes, including on inheritance, had helped drive the wealthy out of the UK.
He said: “Many of the loopholes have been closed over the last five years, particularly for non-domiciled people.
“Inheritance tax rates have always been an issue in the UK. With the possible exception of France and Japan, they have always been higher than all other countries globally, so this is probably starting to become more of a problem.
Chancellor Rishi Sunak has frozen income and inheritance tax thresholds for four years, dragging a record number of earners and more estates into higher brackets. Experts warn that the loss of the richest people is harmful to the economy and public finances, as the biggest contributors to tax revenue are diverted.
Add Comment