The UAE has become the second most popular destination for millionaires leaving the UK, with more than 800 high-net-worth individuals relocating to the Emirates in 2024. According to data from Henley & Partners, the exodus comes as the UK prepares to implement significant changes to its tax regime.

The UK government, led by Keir Starmer, announced new tax reforms that will subject the overseas assets of non-domiciled individuals (“non-doms”) to inheritance tax starting April 2025. Previously, non-doms could protect their foreign income and assets by paying a £30,000 annual fee to HM Revenue & Customs.

These tax changes have prompted a record number of millionaires to leave the UK, with around 10,800 relocating abroad last year, a sharp 157% rise compared to 2023. The European Union was the top destination, attracting about 6,500 individuals.

Among those making the move is Nassef Sawiris, Egypt’s wealthiest individual and owner of Aston Villa football club, who shifted his family office to Abu Dhabi in late 2023.

Economic experts are divided over the reforms. While the UK government estimates the changes will generate £3 billion annually, advisory groups like the Adam Smith Institute warn that the reforms could shrink the economy by £1.3 billion by 2035, potentially leading to 23,000 job losses.

From April 2025, inheritance tax will apply to the global assets of individuals who have lived in the UK for at least 10 of the past 20 years. Currently, only UK-based assets are taxed upon death.

The changes, coupled with political shifts and economic uncertainty, have accelerated the migration of wealthy individuals, with the UAE emerging as a leading destination for those seeking a more favorable financial environment.