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The United Kingdom is projected to lose the most millionaires of any country by 2028, according to a report by Swiss bank UBS. The number of millionaires in the UK is expected to decrease by 17%, from 3.062 million in 2023 to 2.542 million in 2028. This trend is in contrast to the global increase in millionaires, with only a few countries, including the Netherlands, expected to see a decline in millionaire population.
Factors such as mobile wealthy individuals seeking new locations, economic nationalism, and changes in supply chains are contributing to the shift in millionaire demographics. The impact of Russian sanctions, as well as the attraction of low-tax jurisdictions like the United Arab Emirates and Singapore, are also influencing millionaire relocations.
UBS’s chief economist, Paul Donovan, highlighted the significance of the UK as a hub for millionaires and the potential repercussions of their relocation. Taiwan, on the other hand, is expected to experience a significant increase in millionaires due to growth in its microchip industry and immigration by wealthy foreigners.
Although changes in tax rules for non-doms have been cited as a reason for wealthy individuals leaving the UK, UBS’s forecast indicates that this is only a minor factor. Overall, the report estimates a substantial transfer of wealth globally in the coming years.
Recent research by Henley & Partners also supports the trend of millionaires leaving the UK, with Brexit being identified as a contributing factor. The UK has seen a net loss of millionaires over the past decade, with projections indicating a continued outflow of wealthy individuals.
Additional reporting by Katie Martin in London