UK wealthy exodus expected to accelerate says survey
Wealthy expatriates living in the UK are expected to quit the country with nearly half of them looking to leave, according to a survey from HSBC Bank International.
The latest survey on expat intentions in the UK shows the trickle of so-called resident, non-domiciled people leaving the country since the removal of some of their tax advantages is turning into a rigorous flow. Resident, non-doms make up at least a third of the expat community living in the UK.
The UK government introduced an annual levy of £30,000 n overseas income for resident, non-doms in April 2008. A higher income tax rate for those earning £150,000-plus was introduced this year.
Cost of living appears to be also influencing decisions to leave. The survey said expats in the UK spend more of their income on accommodation than expats living anywhere else in the world, with accommodation by far the biggest expense.
Those considering moving home from the UK also cited limited career prospects as a further reason for leaving.
The survey found that high paying jobs in hedge funds and private equity were losing their appeal for expats, particularly after both areas have been hit hard by the financial turmoil of the last 18 months.
Higher paying expat positions in Asia might also be acting as a magnet for highly skilled expats working in the UK and other centres. According to the survey, Asia is home to the highest paid expats in the world, with one in four expats earning more than $200,000 per year in the region.
Last week, Knight Frank, the upmarket London-based estate agent, said 7% of non-doms have sold their house and left since October 2007, and 2% of high net worth individuals have left for more favourable tax jurisdictions.
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