Britain is alienating its wealthy with taxes, and the UAE becomes their top destination

The UAE, particularly Dubai, has become the preferred destination for thousands of British business executives who recently left the UK following Keir Starmer's government's abolition of preferential tax treatment for non-residents and the imposition of additional taxes on the wealthy.

The UAE is notable for its lack of personal income or capital gains tax, making it an attractive tax haven for global wealth, ahead of other destinations such as Spain and the United States.

A Financial Times analysis indicates that a large percentage of those leaving for the UAE are owners of small and medium-sized businesses, in addition to some billionaires and major investors. Economic circles are concerned

According to Companies House data, 3,790 company directors left Britain between October and July, compared to 2,712 in the same period a year earlier, a significant increase that has raised concerns in economic circles.

Among the prominent names who left were Mark Makebas, founder of FTSE Russell; Bart Becht, former CEO of Reckitt Benckiser; and Ricardo Silva, an investor in AC Milan and owner of the Miami FC football club. Prominent boxing promoter Eddie Hearn also relocated to Monaco, as did John Rees, the chief financial officer of Ineos.

Italy has attracted a number of billionaires after implementing a flat tax of €200,000 on foreign income, which exempts newcomers from inheritance tax on offshore assets.

The Labour government's steps included abolishing the "non-dom" or "non-dom" system, which allowed residents who declared their permanent home outside the UK to avoid paying taxes on their worldwide income and assets. The inheritance tax exemption for corporations was also reduced, capital gains tax was raised, and fees for private equity fund managers were increased.

Peak Departures in April

The number of departures peaked in April 2025, coinciding with the implementation of the non-dom amendments. That month, 691 managers left the UK, a 79% increase compared to April 2024 and a 104% increase compared to April 2023.

There is no accurate official data on the number of wealthy individuals who left the UK in response to the Labour government's tax changes, and some surveys that have shown a significant increase in the number of millionaire departures have been criticized for their methodology.

Although official estimates assumed a high rate of departures, the government's models for the abolition of this system did not provide a publicly announced forecast of the number of people who might leave the UK.

The Office for Budget Responsibility (OBR) expects changes to the non-dom system to raise £33.8 billion over the next five years, but described this figure as "dramatic," given its reliance on the decisions of a relatively small group of wealthy individuals.

The newspaper's analysis indicates that the available data only includes people who retained at least one board seat at a UK company while registering their change of country of residence, without knowing their actual tax status. However, the significant increase in this limited sample raises concerns about a large-scale exodus.

In a related context, another British private equity manager who left for Italy said: "The UK is no longer as welcoming to wealth creators as it once was, and there are other countries that offer better incentives."

The UK Treasury confirmed that the country remains "very attractive," while experts called for an "exit tax" on capital gains for those leaving, similar to Canada, Australia, and the United States.

Some of those leaving justified their move by saying that the investment environment in the UK has become less stable and more risky, and that other countries, most notably the UAE, offer a more attractive environment for protecting and growing wealth.