BDO expert: Britain's wealthy value policy stability over low tax rates

The World Citizenship Report 2026, published by CS Global Partners on 14 January 2026, cites analysis by Richard Montague, private wealth partner at BDO. According to research Montague shared, only 18% of those considering leaving the United Kingdom put a low tax rate at the top of their tax-related priorities. Some 42% pointed to the stability of government and the certainty or consistency of tax as their main concern.

Reform of the non-dom regime

According to the report, the British non-dom regime — which allowed residents with a foreign domicile to avoid British tax on foreign income unless it was remitted to the United Kingdom — was abolished with effect from April 2025 and replaced by a new Foreign Income and Gains regime. Newly eligible residents receive a four-year exemption on foreign income and gains. After that period they are taxed on their worldwide income like any other British resident.

Inheritance tax rules have also moved to a residence-based system, bringing further foreign assets within scope for those who have been resident in the United Kingdom for a long period.

The BDO analysis

The report cites Montague’s view that the wealthy are not asking for tax cuts. On his analysis, the British government could offer a clear long-term path for personal taxation, a multi-year framework giving the wealthy and their advisers the certainty they need to plan over the decades that intergenerational wealth management requires.

Montague argues that the abolition of the non-dom regime and the changes to inheritance tax have acted as significant triggers. Many ultra-wealthy individuals are suffering from change fatigue: the relentless accumulation of changes, the speculation ahead of each Budget, and the sense that the goalposts will keep moving.

Trends in wealth flows

According to the report, the United Kingdom positioned itself for many years as a stable safe haven and a net recipient of wealthy individuals. That dynamic reversed over 2024-2025 against the backdrop of tax reform.

According to the Henley Private Wealth Migration Report 2025, published on 24 June 2025, net millionaire outflows from the United Kingdom were expected to reach around 16,500 in 2025, the highest figure ever recorded for any country.

Popular destinations

The report lists the popular destinations for wealthy people leaving the United Kingdom as Spain, Portugal and Italy, with residence packages designed for mobile wealthy individuals. The United States, Canada and Australia feature prominently on lifestyle ties. The United Arab Emirates is actively courting global ultra-wealthy talent with tax advantages and modern infrastructure.

Montague observes in the report that recent regional conflicts have tested the United Arab Emirates’ positioning on stability. He notes divided client behaviour, with some expatriates leaving immediately while others watch how the situation develops.

Where the United Kingdom stands in the report

In the overall World Citizenship Report 2026 table, the United Kingdom scores 80.0 points and is tied in ninth with the Netherlands. On the Quality of Life pillar it scores 89.1 points, tied in sixth with Denmark. On the Economic Opportunity pillar it scores 70.8 points and ranks 11th.

CS Global Partners is an advisory firm based in Mayfair, London, founded in 2012.