(MENAFN) A significant number of millionaires have been leaving the UK since the Labour Party took over in 2024, largely due to the government's plan to abolish the country's non-domicile (non-dom) tax regime. This tax system, which allowed wealthy individuals living in the UK to avoid paying taxes on earnings made outside the country, has long been a draw for the super-rich. However, the Labour government's proposed shift to a residence-based tax system has spurred many high-net-worth individuals to relocate.

According to data from New World Wealth provided to The Times, the UK lost 10,800 millionaires to migration in 2024, marking a 157% increase from the previous year. Many of these individuals are moving to countries like Italy, Switzerland, and the UAE, where tax policies are more favorable. The wealthy have been particularly affected, with 78 centimillionaires and 12 billionaires leaving the UK in the past year.

The migration trend comes as the government expects the tax reforms to raise £2.5 billion annually. However, economists predict the reforms could result in a loss of nearly £1 billion in tax revenue due to the departure of high earners. While Labour argues that the extra tax revenue will fund essential public services like schools and healthcare, the economic impact of losing wealthy taxpayers remains a concern.

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