Britain loses nearly 6,000 business owners amid Rachel Reeves tax changes and millionaire exodus
Britain has seen nearly 6,000 business owners leave the country over the past two years amid sweeeping tax changes and growing concerns over economic competitiveness, according to new research from Rathbones.
The wealth manager analysed Companies House filings between January 2024 and 2026, and found that 5,938 business owners relocated overseas during that period, with technology entrepreneurs representing the largest share of those departing.
The United Arab Emirates emerged as the most popular destination, followed by Spain and the United States. The outflow comes as Labour implements fiscal reforms that have altered inheritance tax rules, increased capital gains tax rates and abolished non‑domiciled status — measures advisers say are influencing relocation decisions.
Chancellor Rachel Reeves has reduced the level of inheritance‑tax relief available when family businesses are passed to the next generation, while introducing provisions allowing individuals to fall outside the inheritance‑tax net entirely if they live abroad for at least 10 years.
Despite the departures, Britain continues to attract entrepreneurs from overseas, with 3,182 business owners relocating to the UK over the same period.
That leaves a net outflow of 2,758 business owners, according to Rathbones’ analysis.
Separate data shows Britain recorded a net loss of 16,500 millionaires last year, representing $91.8billion in investable wealth.
Advisers say the appeal of destinations such as Dubai extends beyond tax policy.
Nearly 6,000 business owners have left Britain in two years
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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.”
Michelle White, head of private office at Rathbones, said interest in relocation is rising among younger business owners.
“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,” she said.
Dubai offers political stability and regulatory clarity according to experts
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GETTYEamon Shahir, co‑founder of Taxd, said interest from entrepreneurs and younger Britons considering a move to the Emirates had increased.
“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,” he said.
Broader economic conditions are also influencing decisions.
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.”
Labour have been accused of “clearly not prioritising business owners”
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He cited sluggish growth, subdued investment and persistently flat productivity since the pandemic, adding that signs of weakness were now emerging in the labour market.
Mr Little said a cooling economy can create a more challenging environment for risk‑taking, with implications for hiring decisions and consumer confidence.
However, analysts note that not all entrepreneurs who explore relocation ultimately leave the UK.
Nick Ritchie, senior director at RBC Wealth Management, said older business owners are often deterred by family commitments and established social ties, while younger entrepreneurs with fewer attachments and capital‑light operations are generally more mobile.
