Labour’s tax raids set to cause a fifth of Britain’s millionaires to LEAVE the UK, damning analysis reveals

Britain is set to lose a fifth of its millionaires under this Labour government – becoming the worst nation in the world for millionaire exits, analysis has revealed.

The government’s tax raids means that the 4.55 per cent of British residents with over $1million in assets will fall to just 3.62 per cent by 2028, according to the Adam Smith Institute (ASI).

Research from the economics think tank suggested millionaires are leaving the UK due to increased day-to-day taxation, frozen inheritance tax thresholds and a potential increase in capital gains taxes.

Wealthy Brits also fear the abolition of the non-dom regime – despite the crackdown predicted to fail in yielding any extra tax income.

The UK is only one of three major nations set to reduce in individual millionaires over the next few years, along with the Netherlands and Saudi Arabia. Others – such as Taiwan, Japan and South Korea – will see their own numbers rise by a third or more.

The ASI’s Millionaire Tracker suggests that the UK is set to lose 9,500 ‘liquid millionaires’ – wealthy individuals who hold over $1million in cash or investable assets (file photo)

The Chancellor has now been told to lay out a more business-friendly environment for wealth creators at this month’s Budget. She was warned against targeting the top one per cent of earners, who pay 29.1 per cent of all income tax.

The ASI’s Millionaire Tracker suggests that the UK is set to lose 9,500 ‘liquid millionaires’ – wealthy individuals who hold over $1million in cash or investable assets – in 2024, meaning the UK’s total number will fall to 593,000. This is far below the figure in 2007, when the UK had 708,500 liquid millionaire residents.

Former chancellor Nadhim Zahawi said: ‘The rate at which millionaires are leaving the UK is a vote of no confidence in both our current tax and regulatory regime, and anti-business and anti-prosperity measures that could be coming down the line.

‘These individuals are often entrepreneurs and business owners. Their exit won’t just reduce necessary funds for public services- it will decrease investment in the wider economy too.

Former chancellor Nadhim Zahawi said the rate of departure of millionaires from the UK was ‘a vote of no confidence’ in the Government’s policies, including its tax regime

‘I urge the Government to rule out anything in the Autumn Budget on the October 30, that could drive them away even more. They should instead be focusing on attracting more millionaires from across the world to make a home and set up shop in Britain. Abandoning anti-non-dom policies and abolishing or cutting anti-wealth taxes would be a vital first step.’

It comes as a survey seen by the Daily Mail reveals that 24 per cent of taxpayers plan to move their residency abroad due to fears about this month’s budget.

Polling from Cornerstone Tax and Yonder also shows that a third of Brits say changes in taxation are the main reason why they would leave the UK. A fifth plan to migrate in the near future due to proposed tax hikes, while 16 per cent agree that the deciding factor influencing their decision to leave is the Autumn Budget.