For years, the UK’s non-domiciled (non-dom) made it an easy place for global entrepreneurs and investors to base themselves – tax was paid on UK income, while overseas income stayed untouched unless you brought it in. That all changed in April 2025 when the UK has ended its long-standing non-dom tax system. Since then, I have watched more and more wealthy individuals move their lives and capital to low-tax hubs like the UAE, and recent talk about a potential UK exit tax is only adding to the sense of uncertainty. On top of that, from a business perspective, some investors are starting to describe the UK as increasingly ‘uninvestable,’ as it can take 30 years to complete a nine-month project due to slow decision-making and strict planning rules (The Telegraph).
What’s changing in the UK
It is clear the UK is going through a major shift in how it treats globally mobile wealth. For years, Britain was seen as one of the most attractive places for high-net-worth individuals to base themselves – stable, well-connected and relatively tax-friendly. That era is now over.
Since April 2025, new arrivals who haven’t lived in the UK for the previous ten years get a four-year window where most of their foreign income and gains aren’t taxed. After that, they are treated like every other resident and taxed on their worldwide wealth. Inheritance tax has also tightened: anyone who has spent ten of the last twenty years in the UK now has their entire global estate pulled into the UK tax net.
It is no surprise that the roughly 83,000 people who previously relied on the old non-dom system – contributing around £12.5 billion in tax (gov.uk) – are rethinking their options. And from the conversations I am hearing, many wealthy individuals are already considering relocation as they try to protect more of their global income (Financial Times).
Signs of a wealth migration
The changes in UK tax rules are already showing in the numbers. More and more wealthy people are leaving the UK, and the UAE – especially Dubai and Abu Dhabi – is their favourite destination. Reports say over 800 millionaires moved there in 2024, and the UK ended the year with a net loss of about 10,800 rich people – more than double the year before (The National).
It is not just private wealth moving. UK company directors are moving too. Between late 2024 and mid-2025, nearly 4,000 directors left the UK, with the UAE again on top of the list (Gulf Today).
For the UAE, this inflow of wealth and talent is a welcome development, contributing to growth in its financial, real estate, tourism sectors and everything in between.
Why the UAE is so popular
There are a few simple reasons people choose the UAE for relocating wealth:
What this means going forward
Looking ahead, the UK hopes stricter tax rules will bring more money. But many worry it could push away the very people who contribute most – through investment, spending and job creation. Economists warn losing wealthy residents could hit the property market, luxury retail and service sectors, at least in the short term.
For anyone considering a move, it is not a simple decision. Even after leaving, some UK income or assets can still be taxed, and the Statutory Residence Test decides if you are really non-resident. On top of that, relocating for tax reasons means big lifestyle changes – schooling, home, work.
Still, the trend is hard to ignore. The UK is tightening rules, while the UAE offers a strong mix of low taxes and lifestyle benefits. And in my view, the end of the UK non-dom era could very well be the start of Dubai becoming the main hub for British wealth.
