‘Regrexit’: Why global investors are reconsidering the UK tax regime

Over the past year, much of the public debate around international wealth has focused on the number of high-net-worth individuals leaving the UK following changes to the tax regime.

However, conversations with internationally mobile clients suggest the picture is more nuanced. While some individuals have relocated to jurisdictions such as Dubai, Monaco, Italy, Spain and Portugal, many are now reassessing those decisions, particularly in light of recent geopolitical escalation, and a volatile market.

At the same time, the UK is increasingly appearing on the radar for internationally mobile families — these include families from the United States, the Caribbean, and across Europe. For some, the UK’s legal framework, financial infrastructure, and recent stability make it an attractive destination. Others are seeking to come to the UK to rely upon a favourable tax position provided by the UK’s new Foreign Income and Gains (FIG) regime, or a favourable tax position that can be taken advantage of under certain double tax treaties.

Taken together, this suggests that global wealth mobility is far more fluid than headlines often imply.

Relocation decisions are being revisited

A number of individuals who left the UK in response to tax changes are now reconsidering their long-term plans.

This reassessment has been sharpened by rising geopolitical tensions, including the ongoing conflict involving Iran and reported threats to financial infrastructure in the Gulf, which have unsettled confidence in parts of the region. In particular, some individuals who moved to Dubai are now exploring further moves to the United States, to Europe, or back to the UK.

This phenomenon is sometimes described as “regrexit” — where individuals who left the UK subsequently reassess whether the move delivered the benefits they anticipated.

For internationally mobile families, relocation decisions are rarely permanent. Lifestyle considerations, regulatory changes, and economic conditions can all prompt a change in direction.

Changing tax policies in competing jurisdictions

Another factor influencing wealth mobility is the evolving tax landscape across Europe.

Italy’s flat tax regime, which has historically been used to attract wealthy individuals, has increased several times in recent years. Policy changes of this nature can affect the perceived stability of a jurisdiction and lead individuals to reconsider where they wish to base themselves.

At the same time, countries such as Monaco, Spain, and Portugal continue to attract internationally mobile individuals through a combination of lifestyle appeal and favourable tax regimes, though cultural and language barriers make those jurisdictions impermeable for international families.

For families navigating international moves, these decisions are rarely driven by a single factor. Instead, individuals typically assess a combination of tax policy, political stability, lifestyle, and long-term planning considerations.

Growing interest from US clients

One notable trend is the level of interest from US clients exploring relocation options.

For some internationally mobile US families, cultural and political considerations are increasingly influencing where they choose to live and structure their wealth. As a result, advisers are seeing a growing number of enquiries about establishing a presence in the UK.

In addition to these softer drivers, the UK offers a compelling practical proposition. Its sophisticated financial services sector provides a depth of expertise, regulatory stability and global connectivity that is difficult to replicate elsewhere, while its well-established legal framework, underpinned by the global reputation of English law, offers predictability in areas such as dispute resolution, contract enforcement and cross-border structuring.

US citizens can also take advantage of significant tax breaks and benefits, as provided under the US/UK double tax treaty — this is provided that they structure their affairs correctly in line with the treaty.

The UK’s long history as an international financial centre means it remains familiar territory for many families with global assets and business interests.

Wealth structuring, asset protection and key considerations

Another important factor is the UK’s long-standing role as a hub for wealth planning.

International families moving to the UK can often take advantage of established structures designed to manage and protect global wealth. For example, in certain circumstances offshore trusts can be used to ring-fence assets and support long-term succession planning. For internationally mobile families with assets across multiple jurisdictions, these types of structures can provide clarity, stability and protection across generations.

However, careful planning is essential. Wealth structures must be designed with both UK and international tax considerations in mind, particularly where individuals retain connections to multiple jurisdictions.

This need for careful planning is underscored by the broader global context. Wealth mobility has always been influenced by changes in tax policy, economic conditions and political stability. Recent developments, including shifts in tax regimes, tightening immigration policies and rising geopolitical tensions, highlight how quickly the direction of travel can change. While some jurisdictions have attracted large numbers of wealthy individuals in recent years, policy changes or lifestyle considerations can just as quickly alter those dynamics.

Against that backdrop, the UK continues to play a central role in the international wealth landscape. Its legal system, financial expertise and long-established planning structures remain attractive to globally mobile families.

For high-net-worth individuals considering relocation, taking specialist advice at an early stage is critical. Decisions around residency, tax exposure and wealth structuring should be approached holistically, with a clear understanding of how UK rules interact with international tax regimes, trust and other structures,  and cross-border assets. Done properly, this enables families to protect their wealth while planning confidently for the long term.