Thousands of Entrepreneurs Flee UK Amid Tax Reforms and Economic Concerns

According to the International Desk of Webangah News Agency, Wealth management firm Rathbones has reported that an estimated 6,000 owners of growing businesses have left the United Kingdom in the last two years. These departures are attributed to worries about the nation’s economic competitiveness and shifts within its tax framework.

The research indicates that the technology sector has seen the highest percentage of business owners choosing to relocate from the UK. The United Arab Emirates has emerged as the most attractive destination for these individuals, followed by Spain and the United States.

This significant wave of emigration follows the implementation of new tax policies in the UK. These changes include a more stringent inheritance tax system for business owners, an increase in capital gains tax rates, and the discontinuation of non-domiciled tax status, impacting many affluent individuals.

Michelle White, Head of Private Office at Rathbones, highlighted the accelerating trend of capital flight from Britain. She emphasized the critical need to ensure the economy’s international competitiveness, attract talent, and reform the taxation system.

The UK economy has been grappling with challenges such as weak growth, low investment, and productivity stagnation since the COVID-19 pandemic, issues that have now extended into the labor market.