Numbers Of Wealthy Leaving UK Will Continue According To Latest Study

High net worth investors expect the number of wealthy people leaving the UK to keep climbing over the next three years, new research by Wealth Club shows.

The study by Wealth Club, the UK's largest online investment service exclusively for high net worth investors, found 86% of its clients expect the trend of wealthy people leaving the UK for tax purposes to increase over the next three years. Around 39% expect a dramatic increase.

More than a fifth (22%) of those questioned say they have wealthy friends or associates who have left the UK in the past 24 months because of higher taxes.

The same number say they are considering leaving the UK and moving abroad themselves.

The key financial reason for quitting the UK was high taxes, cited by 86% of respondents, although nearly half (48%) blame sluggish UK economic growth. Around a third (32%) point to the increased costs of running a business while 28% are worried by London’s loss of status as a financial hub.

The main non-financial reason cited by 69% was political concerns while 61% of those considering quitting pointed to lifestyle and worries about crime. The most popular place to move to was Portugal, picked by 17%, with 12% choosing the Channel Islands or the Isle of Man. Only 7% picked the UAE.

Around a fifth (22%) of those considering leaving the UK expect to save at least £100,000 in tax in their first year abroad with one in 12 (8%) expecting to save more than £500,000.

Wealth Club carried out the study ahead of the November 26th Budget to find out what its investors expect and what they are doing in advance.

Wealth Club founder and chief executive Alex Davies said: “Wealthy people are increasingly leaving the UK because of taxation issues, and wealthy investors expect the trend to accelerate."

“An exodus of the wealthy is bad news for Government tax revenues, both short and long term. The top 1% of UK taxpayers pay a third of all income and capital gains tax. Last year alone, just 100 individuals contributed £4.1 billion. If even one leaves, that’s a big hole in the public finances."

“Longer term, anyone who leaves doesn’t just stop paying tax here - they stop shopping, setting up businesses, employing people, buying houses and investing."

“And it’s not just about higher taxes. Our research shows wealthy taxpayers feel the UK no longer welcomes success and is making it harder to run a profitable business."

"The Government risks creating a culture that seems hostile to achievement. The Chancellor needs to wake up and smell the coffee.”