The UK is continuously losing its position as one of the top cities in the world with the greatest number of wealthy inhabitants. The changing trend was reported by New World Wealth (NW Wealth), a global wealth intelligence firm based in South Africa.
According to an exclusive report by NW Wealth, millionaires and individuals with a net worth of more than $1 million are leaving the UK as a consequence of Brexit and resulting regulations.
Andrew Amoils, the head of research at the South African intelligence firm, explained that the trend began five years ago when more high net-worth individuals left the country than came in.
“Notably, during the period from 2017 to 2020, the UK has lost approximately 9,000 more HNWIs than it has gained,” Amolis said.
He added that a possible reason for the trend was the impact of Brexit on the economy and the increased taxes on the wealthy, which have led to a significant decline in the number of people living in the UK for tax purposes (non-domiciled status).
In 2013, more than 113,000 people in the UK claimed non-domiciled status, 33,000 more than in 1997. NW Wealth revealed that the trend has since reversed between 2017 and 2020.
Amoils confirmed the possibility of a trend reversal, as the curve flattens out. However, he stated that the UK is certainly no longer seen as a prime destination for relocation by the wealthiest people in the world, with Australia, Switzerland and the UAE becoming destinations of choice.
Aside from being the world’s sixth-largest economy with a GDP of $2.71 trillion, the UK boasts a per capita income of $41,811, making it one of the top 10 wealthiest economies in the world by individual wealth.
The report follows earlier stories in the media that post-Brexit tensions and realities continue to drive British millionaires to Portugal for tax reasons and EU perks.
Forbes reported earlier this year that despite the impact of the COVID-19 pandemic and post-Brexit implications, London ranks seventh internationally in terms of its number of billionaires.
In a strategic step toward diversifying and protecting his significant wealth, Africa’s wealthiest man, Aliko Dangote, recently announced plans to open an office outside his home country of Nigeria. Interestingly, he picked New York as opposed to London as his destination of choice.