London Is Losing Millionaires but Holding on to Their Billions

London, long regarded as a global hub for the wealthy, is experiencing a decline in its millionaire population. Despite this, the city continues to serve as a major financial center where billionaires manage and grow their wealth. Recent data from With Intelligence indicates that although ultra-rich families are relocating their residences, London remains one of the most important hubs for family offices worldwide (Business Insider).

Tax Changes and Wealth Migration

The UK government introduced tax reforms in April that impose a 40 percent inheritance tax on worldwide assets held by residents living abroad (UK Government Tax Guidelines). This reform has encouraged many billionaires to move to lower-tax jurisdictions such as Monaco, Switzerland, and the United Arab Emirates. High-profile figures like Lakshmi Mittal and Richard and Ian Livingstone have relocated to take advantage of these benefits.

While relocating may reduce tax liabilities for some individuals, many billionaires continue to maintain their financial operations and investments in London. Analysts point out that moving personal residence is significantly easier than relocating complex financial networks that involve multiple banks, investment portfolios, and legal structures.

Family Offices Remaining in London

Despite the migration of some wealthy residents, London remains a central hub for family offices. With Intelligence reports that roughly one-third of the 259 single-family offices registered in the UK continue to operate in London. These offices, including LK Advisers, London & Regional Group Properties, and Seatankers Management, continue to manage vast portfolios and oversee day-to-day financial operations for ultra-wealthy families.

Alastair Graham, director of family offices at With Intelligence, explains, “Private capital gravitates toward centers with the strongest support ecosystems. London remains Europe’s largest asset management hub.” He notes that London continues to outpace other European financial centers including France, Germany, and Switzerland due to its deep professional networks, legal expertise, and investment infrastructure.

Record Levels of Millionaire Migration

The Henley Private Wealth Migration Report 2025 highlights that the UK is expected to lose 16,500 millionaires this year. This is the highest number of millionaires leaving any country, more than double the losses reported in China. Analysts attribute this trend to a combination of higher taxes, post-Brexit regulatory uncertainty, and stricter rules for investor migrants.

The report also shows that many of the departing millionaires are not necessarily selling off assets but shifting their personal residences to optimize tax planning. This subtle but significant shift reflects a broader trend in wealth management: maintaining financial operations in established centers while optimizing personal fiscal exposure abroad.

London’s Enduring Financial Advantages

London’s appeal is not solely tax-driven. The city hosts a dense network of investment professionals, over 180 banks, and leading private client law firms (City of London Corporation Report 2025). This network allows billionaires to manage their assets securely and efficiently. Graham notes that many ultra-wealthy individuals may relocate their residences, but they continue to manage their financial affairs in London.

Furthermore, London offers access to global financial markets, a large pool of experienced professionals, and advanced infrastructure for complex wealth management needs. Approximately 50 family offices in the UK manage around $81 billion in assets on behalf of non-resident clients. Graham adds, “Among London’s family offices, 52 percent of total assets—or $179 billion—come from offices serving clients living abroad,” underscoring London’s role in global wealth management.

Long-Term Implications for the UK Economy

The migration of millionaires may have broader implications for the UK economy. While London retains its ultra-wealthy clients through family offices, the departure of millionaires can affect local economies, consumer spending, and real estate markets. Economists warn that without policy adjustments, the UK may see a growing wealth gap and pressure on certain service sectors that rely on the spending power of affluent residents.

At the same time, the stability of family offices and London’s position as a financial hub may offset these effects. By maintaining sophisticated wealth management networks, the city ensures that a significant portion of global wealth continues to flow through London-based institutions.

Future Considerations

Looking ahead, tax reforms and proposed wealth taxes could further influence migration trends. Policymakers face the challenge of balancing revenue generation with retaining high-net-worth individuals who contribute to the UK’s financial ecosystem. Graham warns that overly aggressive tax policies may prompt more ultra-wealthy families to relocate entirely, potentially diminishing London’s role as a premier wealth management center.

Conclusion

Even as London loses some of its millionaire residents, it remains a key global financial hub. The continued presence of family offices, banks, and professional services ensures the city’s role in wealth management remains strong. The relocation of wealthy individuals alongside the stability of family offices highlights London’s strategic position in the international financial landscape (Business Insider.