Thousands of company directors have left the UK since Labour’s October 2024 Budget triggered a wave of tax changes. Figures published by the Financial Times show nearly 3,800 directors filed a change of residence in the months following the abolition of the non-dom regime, a 40% year-on-year increase.
The director exodus peaked in April 2025 as the government’s new tax rules — including the removal of business asset reliefs and increases to capital gains taxes — took effect. In that month alone, director departures rose 79% compared to the previous year. While some directors are foreign nationals returning home, a growing share are UK-born business leaders in sectors such as finance, insurance, and property, who now cite tax uncertainty as a key driver for relocation.
Dubai in the United Arab Emirates has emerged as the primary new base for departing directors, thanks to its zero income and capital gains tax regime. Other popular destinations include Italy, Spain, and the United States. High-profile names relocating include FTSE Russell founder Mark Makepeace and former Reckitt CEO Aaron Becht.
Research from Oxford Economics, based on interviews with UK tax advisers, suggests up to 40% of non-dom clients plan to leave by 2027 — far above the government’s projections. The average non-dom individual was estimated to contribute £400,000 a year in direct taxes and spending, and the cohort invested more than £100 million annually into the UK economy. If departures continue, there is a risk that these losses will outweigh the government’s forecast of an extra £33.8 billion in tax revenue over five years. The Office for Budget Responsibility has warned the final fiscal impact is “highly uncertain.”
Chancellor Rachel Reeves has defended the reforms as fair and necessary, maintaining that the UK’s overall tax system remains competitive within the G7. Critics, however, argue the rules have created a new layer of uncertainty for both international and domestic leaders. Industry groups are now calling for policy adjustments to prevent further talent flight and investment losses.
The full economic impact of the changes will become clearer over the coming year, as new relocation data and tax receipts are analysed. For now, the sharp rise in director departures signals ongoing volatility at the top of the UK business landscape.
