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Introduction
"Britain's millionaires are fleeing!" screams the headline. Day after day, newspapers warn of mass departures driven by Labour's tax policies. Business Secretary Peter Kyle recently admitted tax changes have contributed to wealthy individuals leaving. But is this really Britain's great escape, or is something else going on?
At YRF Accountants in Bolton, we help businesses navigate tax changes every day. Let's separate the facts from the fiction surrounding this so-called exodus.
The Headlines vs The Reality
Media reports claim 16,500 millionaires left the UK in 2025 following the abolition of non-dom status a 200-year-old tax break allowing wealthy foreign residents to avoid UK tax on overseas income. The Tax Justice Network thoroughly debunked these claims, revealing serious flaws in how these figures were calculated.
What the Data Actually Shows
The millionaire migration rate represents less than 1% of the UK's millionaire population and is closer to 0% for most countries. Consider this: Britain now has over 3 million millionaires and 702,000 homes worth over £1 million. Even accepting the 16,500 figures, that's just 0.5% of wealthy individuals.
When the non-dom regime was restricted in 2017, only 2% of those in the UK for fewer than three years left the percentage was significantly lower for those with longer-term ties.
The Norway Comparison
Critics point to Norway's wealth tax causing millionaire flight. The reality? Of 236,000 millionaires in Norway, just 30 relocated a mere 0.01%. Academics calculated that migration would need to be 15 times larger to create any substantial economic cost.
Where Did These Alarming Numbers Come From?
Consultancy firm Henley & Partners, which advises people on obtaining citizenship through investment, has been tracking millionaire movements. Their findings sparked thousands of media stories 30 pieces daily in 2024 alone.
However, the report's methodology primarily measures where millionaires say they work on social media, not where they actually live or reside. A Financial Times forensic analysis found the numbers highly likely to be "fabricated" using standard accounting fraud detection techniques.
Following this scrutiny, Henley & Partners backtracked on their usage of the term "exodus" in late June 2025.
What Do Wealthy People Actually Think?
Contrary to media narratives, 81% of UK millionaires agree it is patriotic to pay a fair share of tax, according to Patriotic Millionaires UK polling. A London School of Economics study found the vast majority of Britain's extremely wealthy would never leave for tax reasons, partly due to stigma and partly because lower-tax jurisdictions are "boring."
Why Does This Narrative Persist?
Certain industries benefit from promoting wealth exodus stories:
? Wealth management firms offering relocation services report surging inquiries (naturally that's their business model)
? Luxury property agents benefit from high-value sales
? Some media outlets profit from alarming headlines
? Think tanks funded by wealthy donors push anti-tax narratives
The Adam Smith Institute characterised millionaire departures as a "vote of no confidence" and called for embracing entrepreneurialism conveniently ignoring that most developed nations have higher tax rates than the UK.
The Real Impact on Bolton & Manchester Businesses
For Bolton and Manchester business owners, here's what matters:
What Actually Changed
From April 2025, the non-dom regime ended. Wealthy foreign residents now pay UK tax on global income after four years of residency, down from 15 years previously. UK inheritance tax at 40% now applies to their worldwide assets.
Should You Be Concerned?
Short answer: No, if you're running a legitimate UK business.
The changes affect a tiny fraction of the population approximately 74,000 people claimed non-dom status in 2022-23. For the 99.9% of Bolton and Manchester businesses operating normally, nothing has changed.
What Business Owners Should Focus On
Instead of worrying about millionaire migration:
? Ensure your business structure remains tax-efficient
? Maximise legitimate allowances and reliefs
? Plan for upcoming tax changes that actually affect you
? Work with accountants who understand your sector
The Bigger Picture: Fairness Matters
The bottom 10% of earners have an effective tax rate of 44% more than twice as high as those in the top 0.01% (21%). Is it unreasonable to ask billionaires to pay at least the same percentage as their secretaries?
The Office for Budget Responsibility projects the non-dom changes will raise £33.8 billion over five years. Even if some wealthy individuals leave, the lost revenue from leaving millionaires comprises a small percentage of the revenue gained.
? The exodus is vastly exaggerated – less than 1% of millionaires affected
? Data was questionable – based on social media, not actual migration
? Most wealthy people want to stay – family ties matter more than tax
? Bolton businesses aren't affected – changes target ultra-wealthy foreign residents
? Fairness matters – everyone should contribute proportionally
How YRF Accountants Helps Bolton & Manchester Businesses
At YRF Accountants, we focus on what actually impacts your business not media hysteria about millionaire migration. Our expert tax planning services ensure you pay what you owe, not a penny more, while remaining fully compliant.
Free Tax Efficiency Review: Contact us before 31 March 2026 to ensure your business structure remains optimal under current tax rules.
Book your review | Call 01204 938696