The UK is expected to lose the greatest proportion of millionaires in the world over the next four years, according to research.
Analysis from economic think tank the Adam Smith Institute found the share of the population who are millionaires will fall by 20 per cent by 2028.
Today, 4.5 per cent of British residents are millionaires but the think tank expects this to fall to 3.62 per cent.
It said the reasons for this include high levels of current taxation, threats of further increases, a hostile culture towards wealth-creators and the abolition of the non-dom regime.
Maxwell Marlow, director of research at the Institute, said: “These findings should be a wake-up call to the government. The more millionaires who leave the UK, the worse the impact on the economy will be.
"It’s important to understand that high net worth Individuals aren’t only leaving in response to the UK’s uncompetitive tax and regulatory regime, the proposed abolition of the non-dom status, and the threat of increased taxation.
"They are understandably also reacting to a culture that is increasingly hostile to wealth creators. As long as we continue along this path, we can hardly be surprised that so many millionaires want to leave."
However, Marlow said the trend is not "set in stone" and could be turned around with a review of tax and regulatory treatment of millionaires.
Robert Brodrick, chair of legal firm Payne Hicks Beach, sad the company was seeing an "exodus" of ultra high net worth individuals leaving the UK in favour of places like Italy.
He added: "We have a golden opportunity to replace the non-dom regime with a system like the one in Italy that charges an annual fixed amount to satisfy a person’s worldwide tax liabilities which encourages UHNWIs to base themselves and their businesses here. Instead we are driving them all away which is seriously damaging to the UK economy.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
