An increasing tax burden and general economic and political uncertainty are resulting in a steady flow of high earners in the UK, including business owners, looking at moves to more fiscally competitive jurisdictions.

According to Adam Grannell, associate director, RSM, in a briefing note on 16 May, accountants, tax advisers and other professionals have an early viewpoint into fiscal trends. 

Over the past 12 months, one seemingly growing trend has been the steady increase in the number of high net worth and ultra-high net worth individuals looking at emigrating from the UK, he argued. 

While emigration enquiries are not uncommon, he said, as the UK has always seen a substantial amount of inbound and outbound traffic, what is noteworthy is the growing number of UK domiciled individuals seeking to relocate overseas, alongside their non-UK domiciled counterparts. 

As may be expected, one of the primary motivators behind this is tax efficiencies. Individuals are either looking to leave the UK to ensure that they are not liable to UK taxes when they realise a significant liquidation event such as the sale of their business, or the "digital nomad" population is realising that there are more advantageous income and/or corporate tax regimes elsewhere. 

The perception is that the number of individuals falling solely in the ‘tax-motivated' camp are a little more toppy than usual, likely as a direct result of a less competitive UK tax regime. Recent changes that may have contributed to a less attractive UK tax regime include the reduction to the business asset disposal relief (formerly entrepreneurs' relief) capital gains tax lifetime limit from £10m to £1m, the lowering of the additional rate income tax threshold and the increased main rate of corporation tax. 

However, there are also those citing the uncertain political landscape and working-lifestyle as reasons to move elsewhere. This would historically always have been a motivating factor but perhaps was not something that was acted upon. 

But in a time where global mobility has never been easier, those taking action seems to be on the rise. Jurisdictions offering a combination of low tax rates, political and economic certainty and good infrastructure (and a perhaps a warmer climate) are an attractive proposition to taxpayers of all ages. 

Popular destinations tend to include:
•    Dubai - low to no taxes, politically stable and world leading infrastructure. 
•    Italy and Portugal - attractive low tax regimes which benefit high earners and those realising liquidation events, geographically close to the UK and favoured semi or full retirement destinations.
•    Croatia - beneficial short-term tax regime for digital nomads which is proving attractive to younger generations.

The age profile of individuals emigrating is varied and spanning the generations. Historically, it might be expected that those emigrating for tax reasons would be slightly older and looking to maximise their retirement pots. However, the digital nomad and first-time entrepreneur generations tend to be younger in age, and whilst they are motivated by lower taxes, they are also assessing where their long-term futures may play out best.

It is possible that the increased ease of global mobility has not been factored into recent tax policy decisions. However, the circumstantial evidence is that the current high tax burden is driving more wealth and wealth creators away from the UK. As we get closer to a general election, more thought may need to be given as to how to reverse this trend.