UK Budget expected to unleash wealth and talent exodus out of Britain

The Chancellor has fired the starting gun on a potential wealth, talent and investment exodus from the UK as today’s Budget – one of the most widely speculated in recent history – unveils a slew of new tax hikes on capital gains, inheritance, pensions, and employer contributions, plus the abolition of the long-standing non-dom status.

Families, business owners, and investors are reeling as the government pushes forward with heavy-handed fiscal measures aimed at balancing the books – but at what cost?

There is legitimate concern that these policies are a fast track to a brain drain, with high-net-worth individuals, entrepreneurs, and top talent now actively exploring relocation to more tax-friendly jurisdictions.

deVere Group, one of the world’s largest independent financial advisory and asset management organizations, is sounding the alarm.

“The Budget has delivered a stark message: tax hard, balance the books – but brace for an economic scar as talent and investment flood out,” says Nigel Green, CEO of deVere Group.

“These new measures are a clear disincentive to live, work, and invest in the UK. We’re already seeing a surge in interest as individuals and families look to secure their financial futures elsewhere.”

The sweeping tax reforms target those seen by the government as “low-hanging fruit” for revenue, imposing higher levies on capital gains, inheritance, and pension savings.

Yet, the ripple effect is likely to hit far beyond the wealthiest few.

Middle-class families with property, pensions, or business stakes now face a growing tax burden that risks eroding their financial stability and discouraging long-term planning.

Nigel Green notes that deVere Group is advising clients to take immediate action.

“This is not a time to wait. Now, more than ever, proactive wealth management is essential. Strategies such as leveraging tax-efficient vehicles, rebalancing portfolios, and planning inheritance early can help mitigate the impact of these changes.”

Countries like Spain, Italy, Switzerland, Dubai, and Singapore are emerging as attractive alternatives for those ready to escape the UK’s intensifying tax landscape.

deVere Group’s offices across Europe, the Middle East, and Asia have already reported a spike in interest from British clients keen to explore new residency options.

The mass departure of high-net-worth individuals could be devastating for the UK economy, which has long relied on their contributions through taxes, investments, and job creation.

“The potential exodus of top talent and wealth could leave lasting scars on Britain’s economy, deterring future investors and undermining our global reputation as a hub for business and prosperity,” Nigel Green warns.

The government’s strategy to increase employer National Insurance Contributions (NIC) has also triggered alarm among business leaders, especially small and medium-sized enterprises already stretched thin by rising costs.

“By effectively imposing a jobs tax, the Budget threatens to stifle hiring and curtail wage growth at a critical time. Employers facing higher payroll taxes are likely to cut back on recruitment or shift investment to automation, undermining job creation when the economy needs it most.”

He adds: “This Budget is more than just numbers – it’s a message that hard work and entrepreneurial success are being penalized. The government is not just taxing wealth but actively driving it away.”

Expats with assets in the UK are also caught in the crossfire of the new tax policies, facing increased capital gains and inheritance taxes that could drastically impact their wealth preservation strategies.

For those with property, business interests, or pension plans tied to the UK, these changes pose additional financial liabilities that may make investing or retaining assets in Britain far less attractive.

“The Budget’s approach risks alienating expats who have long contributed to the UK economy, potentially driving them to re-evaluate their financial ties to the country.”

With regard to the abolition of the non-dom status, the deVere CEO says: “Furthermore, the UK has long benefited from the economic contributions of non-doms, whose direct and indirect investments and business activities have been integral to the nation’s prosperity.

“Additionally, the potential decline in the UK’s reputation as a tax-friendly hub may dissuade future investors and entrepreneurs from considering the country as their base of operations.

“The allure of the non-dom tax status has been a pivotal factor in attracting international talent and creating a dynamic business environment.

“Its removal is likely to signal a shift in the global perception of the UK as a favourable destination for wealth creation and business development.”

As the UK braces for the fallout from these sweeping tax changes, deVere Group is urging families, entrepreneurs, and investors to take swift action to protect their wealth. Consulting a trusted financial advisor now is essential to facing the impact and finding alternative ways to structure assets efficiently.

“Waiting for the dust to settle on this Budget could mean missing crucial opportunities to safeguard financial stability,” concludes the deVere CEO.

“The reality is clear: this Budget is not just a short-term fiscal fix – it has far-reaching implications that will reshape the landscape for UK wealth, talent, and investment for years to come.”