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Britain has seen nearly 6,000 business owners relocate overseas in just two years, according to research by wealth manager Rathbones, intensifying debate over the country’s tax competitiveness and prompting the audience to consider the broader economic impact.
An analysis of Companies House filings between January 2024 and 2026 found 5,938 business owners moved abroad, with technology entrepreneurs accounting for the largest share of departures.
The most popular destination was the United Arab Emirates, followed by Spain and the United States.
Advisers say hubs such as Dubai offer lower personal taxation, no capital gains tax, a perceived pro-business regulatory climate, and a strong lifestyle appeal.
These sweeping fiscal reforms under Chancellor Rachel Reeves, including restrictions on inheritance tax relief and capital gains tax hikes, are prompting many business owners to reconsider their UK presence.
Key measures include reduced inheritance tax relief on family business transfers, higher capital gains tax rates, and the abolition of non-domiciled tax status, raising questions about the fairness of the tax system and its impact on long-term stability.
Advisers say these changes are influencing relocation decisions, particularly among founders planning succession or liquidity events.
One notable reform allows individuals to fall outside the UK inheritance tax net if they live abroad for at least 10 years — a provision some tax planners say may unintentionally incentivise long-term relocation.
Despite the departures, Britain continues to attract entrepreneurial arrivals.
Over the same period, 3,182 business owners relocated to the UK, leaving a net outflow of 2,758, according to Rathbones’ figures, highlighting the shifting landscape of business mobility and the importance of understanding these trends.
Separate research indicates the UK recorded a net loss of 16,500 millionaires last year, representing approximately $91.8 billion in investable wealth.
Critics warn that if tax burdens continue to rise without strategic adjustments, Britain risks losing its status as a competitive global business hub to jurisdictions like the UAE and Spain.
Supporters of the reforms counter that changes are designed to stabilise public finances and ensure fairness in the tax system.
For now, the data suggests a measurable shift in business-owner mobility — with the UAE emerging as the biggest beneficiary of Britain’s tax recalibration.
Michelle White, head of private office at Rathbones, said, “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.”
David Little, partner in financial planning at Evelyn Partners, said: “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.”
Eamon Shahir, co‑founder of Taxd, said, “In the UK, the core market for the Government is not business owners, that is obvious. Whereas in the UAE, there is a lot of focus on entrepreneurs.”
Ali Janoudi, partner and head of new markets at Lombard Odier Group, 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.”
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