The UK Tax Landscape: Signals, Shifts, and Strategy

By James Phillips, Partner, Alpen Partners

Taxation takes many forms across jurisdictions—income tax, capital gains tax, inheritance tax, VAT, and in some cases, wealth taxes. Then there are less visible mechanisms like stealth taxes, which tend to generate revenue without changing headline rates.

Since forming a government, the UK Labour Party has reiterated its commitment to the manifesto that brought it into power. At the same time, policy developments suggest a complex picture. Recent measures include the abolition of the Winter Fuel Payment, frozen benefits, increased National Insurance contributions for employers, and indications that tax thresholds may remain frozen, effectively raising tax burdens over time, particularly for middle-income earners.

Policy signals and their implications

The direction of travel became more apparent in the previous budget, with steps such as extending tax on pensions at death and removing long-standing inheritance tax exemptions for farms and family businesses. While speculation around a sharp rise in capital gains tax was not fully realised, rates increased by 4%, to 24%, attention is now shifting to the possibility of wealth or exit taxes.

This broader conversation is occurring at a time when international mobility is rising, particularly among affluent individuals seeking long-term stability in their financial planning.

Trends in wealth migration

The Henley & Partners Wealth Migration Report 2025 estimates that 16,500 millionaires will leave the UK this year, taking roughly £92 billion in assets with them. UBS, in its Global Report 2024, projects that the number of UK-based millionaires could decline by up to 500,000 between 2024 and 2028.

While the term “exodus” may overstate the situation, it reflects a growing interest in cross-border planning and jurisdictional diversification, factors increasingly influencing how and where wealth is held and managed.

Other countries provide useful reference points. Norway, for instance, introduced a modest increase in its wealth tax in 2022, raising the rate to 1.1%. Following this, 30 high-net-worth individuals left the country, more than in the previous 13 years combined (Dagens Næringsliv). The resulting decline in tax revenue sparked a national debate about the long-term effectiveness of such policies.

While the UK and Norway differ in scale and context, the Norwegian example illustrates the trade-offs that can accompany changes to wealth taxation.

Jurisdictional diversification and quality of life considerations

Data from Henley & Partners shows that the UAE, the United States, and Italy have been among the top destinations for relocating wealth, with Italy’s flat-tax regime attracting particular interest. Switzerland, too, remains a well-regarded option among English speakers drawn to jurisdictions known for political and economic stability, predictable tax frameworks, and a high quality of life, including well-regarded education and healthcare systems, as well as natural surroundings that offer recreational opportunities year-round. Other jurisdictions, such as Portugal, Greece, and Monaco, have also seen increased interest from internationally mobile individuals and families evaluating long-term planning options.

Exploring cross-border planning options

As tax systems evolve, often in the direction of higher overall tax burdens, some individuals are revisiting their financial and legal frameworks with a view to long-term flexibility and resilience. This may involve considering different jurisdictions, reviewing existing structures, and consulting professionals who specialize in cross-border wealth and estate planning.

Alpen Partners continues to monitor these developments and works with clients navigating international financial challenges. For those who are evaluating their own plans in light of current trends, as head of the UK team at Alpen Partners, I’m happy to share insights shaped by our experience working across multiple jurisdictions and helping clients navigate international considerations.

Alpen Partners International is not a tax specialist or advisor. The information provided by Alpen Partners International is for general informational purposes only and should not be considered as tax advice. The financial strategies and services we offer may have tax implications, and it is important to understand that tax laws and regulations are complex and subject to change.

We strongly recommend consulting with a qualified tax professional or advisor who can provide personalized advice tailored to your specific financial situation and needs. Your tax advisor will be able to assess your individual circumstances, guide you on any tax-related matters, and help you make informed decisions.

Alpen Partners International does not assume any responsibility or liability for any tax consequences that may arise from actions taken based on the information provided by our firm.