Rich Britons are leaving UK in droves: Why it matters

Dubai: As of April 2025, sweeping UK tax changes have sparked a millionaire exodus. Thousands of high-net-worth individuals are packing up for tax-friendlier destinations, and it’s not just London feeling the squeeze.

For UAE-based professionals considering a move to the UK—for work, study, or family—this shake-up has implications that reach beyond billionaires.

A tax tide turning

The UK has scrapped its long-standing “non-dom” status, which allowed foreign nationals to avoid tax on overseas income. From April 6, 2025, all UK residents—regardless of origin—will be taxed on their worldwide income unless they qualify for a temporary four-year relief. That relief only applies if you’ve lived outside the UK for at least 10 consecutive years before moving.

Previously, new arrivals (many from Hong Kong, India, or the UAE) could benefit from generous tax breaks. Now, even first-time residents will face full tax exposure much earlier—impacting foreign investments, properties, and trusts.

Meanwhile, the income tax rate for top earners remains a stiff 45%, with personal tax allowances shrinking. Dividend and capital gains tax allowances have also been slashed, and inheritance tax will now include assets held overseas for long-term residents.

It’s not just about the ultra-rich

While headlines focus on billionaires leaving, the real story is broader. These changes affect any globally mobile professional earning, investing, or holding assets across borders.

“If you’re planning a career move to the UK, expect tighter tax reporting and a bigger tax bill,” says a Dubai-based wealth advisor. “And if you’re returning to the UK after a long absence, the new rules could catch you off guard.”

Private school fees are also up, with VAT now added—making education significantly costlier for expat families. Landlords, too, face higher stamp duties and tighter inheritance tax rules.

What does this mean for UAE residents?

For UAE-based investors, entrepreneurs, or families eyeing the UK, due diligence is more important than ever. Whether you're applying for a work visa, investing in property, or planning to send your kids to school there, understanding these tax changes is crucial.

Tax-friendly destinations like Dubai are becoming even more attractive—not just to the ultra-wealthy, but to global citizens looking for a stable, low-tax base.

Bottom line: The UK’s tax climate is changing fast. And it’s not just the rich who should be paying attention.