Thousands of millionaires have left London over the past year, with many relocating to the United States and Asia, driven away by high taxes and the ongoing impact of Brexit, according to a report published on Wednesday.
The trend is part of a decade-long pattern that has been attributed to several factors, including increased taxes, the failure to recover from the 2008 financial crisis, and the United Kingdom’s controversial exit from the European Union.
The annual “World’s Wealthiest Cities Report,” compiled by advisory firm Henley & Partners and data intelligence company New World Wealth, reveals that 11,300 dollar millionaires departed London in 2024. This has resulted in a decrease in the city’s millionaire population to 215,700, down from 227,000 in 2023.
As a result, London was overtaken by Los Angeles, which now boasts 220,600 millionaires, placing it in sixth position worldwide.
Andrew Amoils, Head of Research at New World Wealth, noted that the “growing dominance” of the United States and Asia, particularly in the tech sector, had prompted many wealthy tech entrepreneurs in the UK to relocate. He added that Brexit has “arguably exacerbated” this trend.
Amoils also pointed out that the UK’s capital gains tax and estate duty rates are “among the highest in the world,” which acts as a deterrent for wealthy business owners and retirees considering living in the UK.
The report highlights the “dwindling importance” of the London Stock Exchange, which now ranks 11th globally by market capitalisation. In contrast, financial hubs such as Frankfurt and Dubai have gained prominence.
Tax advisers revealed that many wealthy individuals are relocating to countries with more favourable tax environments, such as Portugal, Spain, Greece, the United Arab Emirates, and Italy, where they can pay a fixed annual fee or benefit from lower taxes.
Since 2014, London’s millionaire population has declined by 12 per cent. Moscow is the only other city in the top 50 to experience a more significant fall, with a 25 per cent decrease due to the impact of Russia’s invasion of Ukraine in 2022.
Meanwhile, Paris has seen a five per cent increase in millionaire residents since 2014, while the San Francisco Bay Area has seen a 98 per cent growth, and Singapore has enjoyed a 62 per cent rise.
New York City remains the global leader, with 384,500 millionaires.
