Nearly 6,000 owners of high-growth businesses left the UK over the past two years following changes to Britain’s tax regime and concerns over economic competitiveness, research has found.
Wealth manager Rathbones found that, of business owners to have left the UK, the greatest proportion work in the technology sector. It analysed filings to Companies House between January 2024 and 2026.
United Arab Emirates was the most attractive destination for those leaving the UK, followed by Spain and then the US, Rathbones said.
The research comes as the FT’s annual bonus survey found four out of 10 respondents were considering leaving the UK because of high personal taxation rates, despite their expectations of a bumper bonus season.
The departures come after sweeping tax changes in the UK that have affected many wealthy individuals, including a more punitive inheritance tax regime for business owners, higher rates of capital gains tax and the abolition of the non-dom status.
However, while chancellor Rachel Reeves restricted the amount of inheritance tax relief businesses can receive when passed down, she also made it easier for British people to avoid inheritance tax if they leave the UK for at least 10 years.
Michelle White, head of private office at Rathbones, said: “International mobility among business owners and wealth creators continues to accelerate and these findings show a clear shift in where UK entrepreneurs choose to base themselves.
“We are talking to more individuals and families — particularly younger business owners — considering relocation in search of better opportunities, more favourable tax environments and more optimism about long-term growth prospects.”
She warned that this trend underscored “the importance of ensuring that our economy, talent pathways and tax system remain internationally competitive”.
Over the past two years, 3,182 business owners came to the UK, resulting in a net exodus from the UK of 2,758, Rathbones said.
The UK saw a net outflow of 16,500 millionaires last year, equating to $91.8bn in investable wealth, while jurisdictions such as the US and UAE experienced corresponding inflows, the wealth manager added.
Ali Janoudi, partner and head of new markets at Lombard Odier Group, said Dubai and other jurisdictions have been “rapidly catching up” with the UK as a hub for entrepreneurs.
“Entrepreneurs think globally and are increasingly mobile, so they naturally look for the most efficient, advantageous and attractive jurisdiction from which to operate,” he said.
“Beyond tax efficiency, Dubai offers political stability, regulatory clarity and a business environment built around growth . . . At the same time, safety, education and overall quality of life matter.”
Eamon Shahir, co-founder of Taxd, an online tax filing service, who gives advice on tax to people moving from the UK to the UAE and other Gulf states, said he is seeing huge interest in people moving to the Emirates, particularly entrepreneurs and younger Britons.
“In the UK, the core market for the government isn’t business owners, that’s obvious,” he said. “Whereas in the UAE, there’s a lot of focus on entrepreneurs. When you come out to Dubai [as an entrepreneur], you understand that the focus is on you. The government wants high-achieving people setting up businesses and they’ve made the landscape for that.”
David Little, partner in financial planning at wealth manager firm Evelyn Partners, said that over the past decade, “a steady stream of entrepreneurs and business owners have passed through Heathrow on the way to Dubai, Lisbon, Milan or Miami, reflecting a broader unease about the UK’s direction”.
He noted that although “changes to the tax landscape are a factor, the motivations extend beyond that”.
“The UK economy has struggled to regain momentum since the pandemic. Growth has been weak, investment subdued and productivity stubbornly flat, and now the fragility looks like it’s extending into the jobs market.
“For business owners, this is not merely a macroeconomic concern: it shapes hiring decisions, consumer confidence and the prospects for domestic demand. A softening labour market may relieve wage pressure in the short term, but it also signals a cooling economy, which is a disconcerting backdrop for risk-takers.”
However, Nick Ritchie, a senior director and wealth planner at RBC Wealth Management, said: “Many clients shelve relocation plans when faced with the realities of the upheaval of children in school, abandoning a social network and the friction cost of trading properties.
“For younger, upwardly mobile business owners, it can be a different story. With fewer ties, they often feel less wedded to the UK and much more likely to go through with a move, particularly if they have a capital-light business without staffing and infrastructure in the UK.”