Recent UK government tax changes, exposing UK non-domiciled (non-dom) individuals to inheritance tax at 40% on their worldwide assets, have raised anxiety about non-doms leaving the UK. However, if a significant number of ultra-high net worth people are leaving, what is happening to the management of their fortunes? Are they staying in the UK or migrating with the capital owners?
Analysis of our family office data alongside official company filings, reveals that while some non-dom billionaires are departing for more favourable tax jurisdictions such as Italy, the UAE, Monaco, Greece, Portugal, and Switzerland, most family offices are remaining in London, highlighting the city’s superior wealth management ecosystem compared with these rival destinations.
Our data also provides an analysis of how Single Family Office (SFO) assets are distributed across UK non-doms, non-UK residents and those who are both resident and domiciled in the UK.
Family offices largely remain in London
- Thomas Hoegh is departing for Cyprus and his brother Morten is departing for Switzerland, but their family office, Hoegh Capital Partners Ltd, appears to be remaining in London.
- Lakshmi Mittal, billionaire founder of steel company Arcelor Mittal, is believed to be departing the UK for the UAE but his family offices, LK Advisers, and Mittal Investments, are remaining in London.
- Richard & Ian Livingstone, who owe their wealth to real estate, are departing the UK for Monaco, but their family investment company, London & Regional Group Properties, is remaining in the UK.
- Elio Leoni Sceti, Italian businessman and entrepreneur, already departed the UK for Italy but his family office, LSG Group, is remaining in London.
- Nassef Sawiris, a senior member of Egypt’s wealthiest family, is departing the UK for Italy, and his family office, NNS Advisers, is also departing for the UAE.
- John Fredriksen, the shipping billionaire, is departing the UK for the UAE but his family investment company, Seatankers Management, is remaining in London.
- Guillaume Poussaz, the founder of Checkout.com, moved to Monaco in April this year but his family office, Zinal Growth Partners, is remaining in London.
Confidence in London's wealth management capabilities
While many non-doms are undoubtedly still conferring with their advisors on whether they should relocate, it’s worth noting that London also hosts 50 SFOs, or 19% of all UK SFOs, where their principal is already a non-resident of the UK. These SFOs represent assets of $81 billion.
When this fact is coupled with the conclusion that the family offices of 9 out of 10 departing non-doms are staying in London, it’s clear that private capital is attracted to where the ecosystem of supporting expertise exists – investment management, fiduciary services, tax and legal advice – and not necessarily to where the private capital owner is living.
