Will the UK wealth exodus continue?

Relocation has been high on the agenda for many high net worth individuals for some time, but particularly so over the last 12 months.

The driver for relocation is personal to each individual or family, and there are often multiple factors at play. In our experience, these can include:

• The opportunity to expand an existing business into another country
• Striving for a better quality of life
• The desire for a fresh start, following a divorce or the death of a loved one

But a key driver that is featuring commonly amongst our clients is the change to foreign taxation regimes (not just those happening in the UK), which impact them and their businesses in a way which has caused them to take stock and reevaluate whether the benefits of staying outweigh the challenges and complexities faced in relocating to a different country.

The UK Budget on 26 November 2025

The recent UK budget on 26 November 2025 announced (amongst other things) the introduction in 2028 of a new ‘mansion tax’ on homes worth £2 million or more in England. There is to be a sliding upward fee scale from £2,500 (for homes valued between £2m and £2.5million) to £7,500 (for homes worth £5million or more), and these fees will be added to a homeowner’s council tax bill.  The tax was introduced by Chancellor Rachel Reeves “to deal with a longstanding source of wealth inequality in [the UK]”.

Will the ‘mansion tax’ drive wealth out of England?

Our view is that while the level of the mansion tax will mean that it is unlikely to be the only factor that would drive an individual out of England, it could add to a number of factors that may already exist for individuals already contemplating leaving the UK, and it could be a deciding factor for some.

The level of the mansion tax has already been criticised for not going far enough, and so the fear of homeowners will inevitably be that now that the fee scale has been introduced, it’s only one way from here, and that’s up!

General observations from clients who have already relocated

Observations we have heard about the recent taxation changes include:

• Once your trust in a government has gone, it’s difficult to get it back
• When there are significant and repeated unexpected changes to fiscal regimes within a relatively short period of time, it creates uncertainty and makes it extremely difficult, from both a personal and a business perspective, to plan for the future

As mentioned above, it is not just the UK introducing tax changes that are driving high net worths to relocate. We are aware of other jurisdictions introducing exit wealth taxes, for example, which have led to a number of enquiries by high net worths looking to relocate prior to those foreign exit taxes coming into force.

High net worths have generally been globally mobile, this is not new, but foreign taxation changes are definitely driving up the numbers of high net worths who are seeking more tax friendly jurisdictions to live and work.

Jurisdictions of choice

The current jurisdictions of choice seem to be:

• Dubai
• Jersey
• Isle of Man
• Monaco
• Italy

Each of these has different entry requirements, but all have something that is clearly attractive to individuals looking for a new place of residence.

Planning is key

Relocation is a major life decision. It generally requires extremely careful and extensive planning and many choose to seek support from professional advisers. It is also just as important to liaise closely with loved ones and any business partners.

There are always tax and legal matters to be considered, and implemented correctly, and often there are structuring needs, not to mention school selection, property purchase, health care, staffing… the list is (almost) endless.

Other matters to consider when relocating

Other considerations, include:

• Succession laws in the destination country. We help facilitate appropriate advice to ensure that clients are well informed, to enable them to either put in place new testamentary wills or perhaps a trust or foundation, if, for example, they are moving to a country which has forced heirship laws
• Visa and employment licence requirements vary from one country to another, and proper planning will avoid any mishaps on arrival. Don’t assume you can arrive, plug in, log in and work remotely indefinitely
• New employment contracts may be needed if a key person is relocating with a business, for example
• Whether the destination country recognises any existing lasting powers of attorney and, if not, what needs to be done to ensure the equivalent is put in place in the new jurisdiction. This applies in respect of personal and business lasting powers of attorney

How JTC can help

Our Private Office team, supported by JTC’s global network, is ideally positioned to assist clients at any stage of the relocation journey.

We can help ensure nothing falls through any cracks and everything happens when it should.

Case study

By way of example, for an existing client, we are:

• Project managing the relocation from Jersey
• Project managing all aspects surrounding the departure from the UK (in conjunction with UK advisers and our colleagues in the UK)
• Project managing all aspects surrounding the entry into Dubai (again, in conjunction with advisers and our colleagues on the ground in Dubai)
• Establishing a company holding structure in Jersey, which will subsequently be administered by a team at JTC in Jersey
• Establishing a foundation in Dubai, which will subsequently be administered by a team at JTC in Dubai
• Establishing two companies in Dubai from which the client will operate businesses
• Continuing to administer a trust and company structure in the Isle of Man

If you are considering relocating and would like to speak with someone, please contact Kellyann Ozouf.

IMPORTANT INFORMATION: The content of this article is intended for general information purposes only. It does not constitute, should not be interpreted as constituting and cannot be relied upon as providing (i) legal, investment or tax advice or any other form of professional advice, (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation of any service or any other product or service regardless of whether such security, product or service is referenced in this article. JTC has sought to ensure that the information provided in the article is adequate, accurate and complete as at the time of publication but offers no assertion or warranty as to its adequacy, accuracy or completeness either at the time of publication or thereafter. No responsibility or liability will be accepted for any losses resulting from reliance placed upon the content of this article.