HNWI mobility event: Clients leaving the UK for tax, political stability and quality of life
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Leading private wealth advisors have revealed that high-net-worth individuals (HNWI) are leaving the UK in search of a more accommodating tax system, political stability and a higher quality of life.
Approximately 130 private wealth professionals attended a Private Client Dining Club panel event in London, sponsored by Locate Guernsey, at which relocation experts provided insights into what is behind the UK’s outflow of HNWIs.
Reforms to UK law regarding the status of non-domiciles and continued uncertainty over their residency status are making the UK less attractive location for a physical base.
The panel speakers also highlighted that HNWIs prioritised political stability and institutional security. Guernsey particularly stands out as a low-tax jurisdiction well-embedded within the international system.
Quality of life factors including education, healthcare and safety were emphasised as vital considerations in choosing the right jurisdiction. Experts agreed that family concerns were decisive in determining the location of the move.
This was summarised simply by the panel: ‘Where can you actually live?’
Mark Davies, managing director at Mark Davies & Associates, said:
“It’s worth bearing in mind that if [a HNWI leaves a jurisdiction], that’s the equivalent of 25 average taxpayers and an increasing number are indeed choosing to relocate to jurisdictions which offer simpler tax regimes and more stability.”
James Quarmby, partner at Stephenson Harwood, added:
“There’s a risk that HNWIs in the UK will experience compliance fatigue as the tax and regulatory burden continues to increase. If this is the case, the UK could be seen as a hostile place to do business which could result in HNWIs seeking alternatives.”
Andrew Carey, Head of Locate Guernsey, commented:
“Following considerations on tax, decisions based on family and a high quality of life are central to determining where HNWIs choose to relocate. With this in mind, it is also vital to have straightforward administrative processes in place to create a welcoming environment for people choosing to relocate and get them settled in quickly.”
These points were eloquently reiterated by panel member David Ummels who himself has chosen to relocate to Guernsey for many of the reasons listed. Since relocating David has established an arts charity, Art for Guernsey, in order to benefit his new home.
For more information on Guernsey, how it works for HNWIs please contact Andrew Carey on +44(0) 7911 719082 or firstname.lastname@example.org. Locate Guernsey provides a free handholding service for clients interested in relocation to the island of Guernsey.