Thousands of Directors Depart UK Following Labour Tax Overhaul
A sharp rise in the number of company directors leaving the UK has been recorded in the wake of Labour’s sweeping tax reforms, with many citing uncertainty and increased financial burdens as key reasons behind their exit.
Following Labour’s abolishment of the non-domiciled (non-dom) tax regime and a series of hikes targeting the wealthy, almost 3,800 directors changed their residence from the UK between October 2024 and July 2025.
A notable increase from the 2,712 departures in the same period the previous year, according to an analysis of Companies House data by the Financial Times.
This shift marks a significant reaction to Labour’s tax policy changes, with the United Arab Emirates emerging as the top destination for those relocating.
The UAE’s zero income and capital gains tax structure, particularly in Dubai, has proven attractive for both established and emerging business leaders.
The FT’s findings highlighted the previously undisclosed departure of several high-profile figures, including Mark Makepeace, founder of FTSE Russell, Bart Becht, former Reckitt Benckiser chief executive, and Riccardo Silva, an AC Milan investor and Miami FC owner.
Eddie Hearn, the Essex-based boxing promoter, has also swapped UK residency for Monaco. Similarly, John Reece, Ineos’ long-standing finance chief, made the move, further underscoring the exodus among top-tier British executives.
At the heart of the shift is Labour’s dismantling of the long-standing non-dom tax regime, a system that allowed foreign nationals residing in the UK to avoid taxation on overseas income and assets.
Alongside this, the government introduced measures limiting business inheritance tax relief, increasing capital gains tax, and raising levies on private equity executives.
April 2025 saw the most dramatic spike in departures, coinciding with the implementation of the new rules. That month alone, 691 directors moved out — up 79% from April 2024 and more than double the figures from 2023.
While the Labour government, led by Chancellor Rachel Reeves, has acknowledged the strain on public finances, a reversal of the policy seems unlikely. Reeves has suggested some potential revisions but maintains the focus will remain on those with the “broadest shoulders”.
One investment firm director, now residing in Milan, explained: “People love the UK, they love the culture, the schools. But they are also in the business of wanting to grow their investments, and the UK has created so much tax friction that it has become too uncertain and too risky to stay.”
Despite no official tally of wealthy emigrants being published, concerns are mounting over a potential “wealth drain.” Though many leavers are foreign nationals returning to their home countries, the proportion of British nationals heading abroad has also risen sharply.
A private equity boss who has relocated to Italy noted: “The UK is now seen as less welcoming to wealth creators and there are plenty of other places they can go instead, and some are even setting up incentives to make it more attractive.”
Besides the UAE, Spain and the United States have seen growing numbers of British business leaders arriving. Italy, in particular, is appealing due to its flat €200,000 tax rate on foreign income, a key draw for high-net-worth individuals.
Nassef Sawiris, co-owner of Aston Villa, recently moved there, blaming the UK’s direction: “Years of incompetence” by the “most left-leaning Conservative party in history”, he said, had driven his decision to leave.
According to Arun Advani, director at the Centre for the Analysis of Taxation, “It isn’t surprising that tax changes would have led to an uptick in departures. That was always expected and was included in OBR projections.”
He added that the UK should explore implementing an exit tax similar to those in countries like Canada and Australia, where capital gains are taxed upon a resident’s departure.
Still, Treasury officials maintain the UK’s global competitiveness.
A spokesperson stated: “The UK remains highly attractive. Our main capital gains tax rate is lower than any other G7 European country and our new residence-based regime is simpler and more attractive than the previous one, whilst it also addresses tax system unfairness, so every long-term resident pays their taxes here.”
Jonathan Reynolds, Secretary for Business and Trade, echoed this sentiment: “The non-dom regime itself is something from the colonial era. It’s right to have a modern tax system.” He added that the UK’s tax competitiveness stacks up well internationally.
