The British daily Financial Times (FT) reported the results of compiling corporate disclosure data from January 2024 to January this year, citing asset management company Rathbones analysis.
During the period, 3,182 business owners moved to the UK, but 5,940 left the UK. Net outflows were 2,758.
Among entrepreneurs who left the UK, the technology (tech) sector was the largest. The country they headed to the most was the United Arab Emirates, followed by Spain and the United States.
During this period, tax reform was carried out in the UK that put a burden on the wealthy, including an increase in inheritance tax and capital income tax rates, and the abolition of tax remittance for non-residents in Korea. Analysts say that changes in the tax environment have affected entrepreneurs’ choice of residence.
“International movement has accelerated between business owners and wealthy entrepreneurs,” said Michelle White, head of Lasbones’ personal assets team. “There is a growing number of young entrepreneurs who are contemplating migration in search of better opportunities, a favorable tax environment and bright long-term growth prospects.” She also pointed out, “It is important for the UK economy, talent channels, and taxation to remain competitive internationally.”
Rathbones added that the number of millionaires in the UK fell by 16,500 last year. The amount of investable assets they have is estimated to total $91.8 billion.
Meanwhile, Ali Zanudi, head of the emerging market team at Lombardi Group, a Swiss wealth management financial institution, said Dubai, United Arab Emirates, is rapidly catching up with Britain, which has been considered a major base for entrepreneurs. “Entrepreneurs are thinking more and more globally and are becoming more mobile. They are turning to more efficient and profitable areas,” he said.
SAM KIM
US ASIA JOURNAL
