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About 42% of those with financial assets in or ties to the UK are actively seeking to transfer their wealth and assets out of Britain and into more tax-friendly jurisdictions. This is according to the results of a survey conducted by deVere Group, one of the world’s largest independent financial advisory and asset management organisations.

The study links the wealth transfer to the first budget by the Labour Party government of Prime Minister Keir Starmer, which was unveiled last October by Rachel Reeves, UK’s Chancellor of the Exchequer or finance minister.

In a statement sent to Financial Nigeria by deVere Group, the firm said the survey’s findings reveal a seismic shift in attitudes toward the UK’s financial environment. Families, business owners, and investors with UK financial connections are exploring options to mitigate the impact of the new tax landscape, which includes higher capital gains and inheritance tax changes on pensions, the abolition of non-domiciled tax status, and increases in National Insurance Contributions (NIC).

“These measures, designed to address fiscal challenges, are perceived as a direct threat to wealth preservation and financial planning,” said Nigel Green, CEO of deVere Group. “The policies outlined in the budget are a game-changer for anyone with financial ties to the UK.”

According to Green, the poll conducted in the week before last Christmas among 600 individuals worldwide shows a remarkable increase in the number of individuals seeking to reposition their wealth abroad. “This is not a knee-jerk reaction – it’s a strategic response to an environment that has become increasingly hostile to wealth and investment,” Green said.

Among the most popular destinations for those reassessing their financial strategies are Italy, Switzerland, Dubai, Portugal, and Malaysia, according to the statement.

“These jurisdictions are being actively explored for their more favourable tax regimes and wealth preservation opportunities. deVere’s global offices report a surge in inquiries, particularly from individuals seeking to establish residency or shift financial assets to these locations.

“The abolition of the long-standing non-domiciled tax status has emerged as a pivotal concern. Historically, this status has attracted significant investment and talent to the UK, fostering a dynamic business environment.

“Its removal sends a strong signal that the UK may no longer be the tax-friendly hub it once was. For those with property, business interests, or pension plans tied to the UK, this represents a significant shift in financial risk,” noted Nigel Green.

The statement added that the heightened capital gains tax (CGT) and inheritance tax on pensions further exacerbate the situation. These changes disproportionately affect individuals who have built up assets and are relying on their financial plans for security.

The resulting higher payroll costs are likely to dampen hiring efforts and redirect investment toward automation, “potentially stifling job creation during a critical period for economic recovery,” according to the survey report.