A recent study reveals that nearly 6,000 rapidly growing business owners have left the United Kingdom in the past two years, primarily due to changes in the UK’s tax system and concerns regarding economic competitiveness. The wealth management firm Rathbones conducted an analysis of data from the Companies House Register between January 2024 and January 2026, finding that the majority of those who departed are involved in the technology sector. The report indicates that the United Arab Emirates has emerged as the most attractive destination, followed by Spain and the United States.
An annual survey by the Financial Times regarding bonuses highlighted that four in ten respondents are considering leaving the UK, driven by high personal tax rates, despite expectations for a rewarding bonus season.
These relocations are a direct response to significant tax reforms in the UK that have adversely impacted wealthy individuals, including stricter inheritance tax regulations for business owners, increased capital gains tax rates, and the removal of the non-domiciliary status.
Ali Janoudi, a partner and head of new markets at Lombard Odier, noted that Dubai and other regions are rapidly catching up to the UK as hubs for entrepreneurship. He remarked that global entrepreneurs are increasingly mobile and seek the most efficient and appealing locations from which to operate. In addition to tax efficiency, Dubai offers substantial stability, regulatory clarity, and a growth-oriented business environment. Safety, education, and overall quality of life are also critical factors.
Eamon Shaheer, co-founder of Taxed, an online tax return service that provides consultancy for individuals moving from the UK, reported significant interest from individuals relocating to the UAE, particularly British entrepreneurs and young professionals.
He stated that in the UK, business owners are not the primary market for the government, which is evident. In contrast, the UAE places a strong emphasis on entrepreneurship. As an entrepreneur in Dubai, one realizes that the focus is significantly on their success, with the government actively encouraging high-achieving individuals to establish their own businesses and creating a conducive environment for that purpose.
David Little, a partner in financial planning at wealth management firm Evelyn Partners, mentioned that a considerable number of entrepreneurs and business owners have passed through Heathrow Airport on their way to Dubai, Lisbon, Milan, or Miami over the past decade, reflecting growing concerns about trends in the UK. He noted that while changes in the tax system are influential, the motivations for leaving go beyond that.
Michelle White, head of the private office at Rathbones, emphasized that the trend of international relocation among entrepreneurs and wealth creators is accelerating, indicating a clear shift in where British entrepreneurs choose to reside.
Rathbones reported that 3,182 business owners moved to the UK over the past two years, resulting in a net migration decline of 2,758 individuals. Additionally, the UK experienced a net migration of 16,500 millionaires last year, equating to $91.8 billion in investable wealth.