London Daily

Focus on the big picture.
Thursday, Oct 22, 2026

Britain’s super-rich prepare to flee as prospect of socialist rule looms

Britain’s super-rich prepare to flee as prospect of socialist rule looms

For more than a year, some of the country’s wealthiest people have been preparing for a hard separation from the European Union. But it turns out they fear Jeremy Corbyn’s opposition Labour party even more.

No-deal Brexit? That’s no problem, at least for Britain’s wealthiest people.

Their bigger fear is leftist firebrand Jeremy Corbyn.


For more than a year, some of the country’s most affluent have prepared for a hard separation from the European Union, making clear they can take a chaotic Brexit in their stride. But the prospect of a victory by Corbyn’s Labour Party is turning out to be the more worrisome development.

“It’s clear there would be a major outflow of high-net-worth individuals and families if a Corbyn government was to come to power,” said Chris Kalin, group chairman of Zurich-based Henley & Partners Group, which helps the rich relocate to tax havens. “This is the big fear, not Brexit or even a no-deal Brexit. That doesn’t make any difference to our clients.”

Potential changes the rich are preparing for, if Corbyn comes to power, include Labour’s desire to increase income taxes for anyone earning more than 80,000 pounds (US$97,600) and a possible wealth tax.

A report commissioned by the party called this year for higher taxes on empty homes, honing in on the luxury apartments left vacant in London’s glitzy Knightsbridge district put on the market for more than US$100 million. It also recommended reforming inheritance tax laws and an extra levy on real estate owned by foreigners, potentially hitting scores of billionaires, including Zara founder Amancio Ortega.

A wealth tax would need to take into account where someone lives as salaries and living costs are higher around London, according to Mark Davies, a London-based tax adviser to rich individuals. “There’s a massive discrepancy from the southeast to other parts,” he said. “Everything is being looked at from a single nation point of view, but the reality is there’s a difference in where you live.”

Financial secrecy could also be hard to come by under a Corbyn-led Labour government.

In a report on tax transparency published two years ago, the party called for individuals earning more than 1 million pounds a year to file tax returns publicly. It also raised the prospect of a public ownership register for trusts and all company shareholders, going further than existing measures that require disclosure of only major shareholders.

Data leaks from offshore law firms such as the one three years ago from Panama’s Mossack Fonseca could spur a Labour government to consider even greater financial transparency. Highlighting his personal interest in the matter, Shadow Chancellor John McDonnell queried the Conservative government’s progress last year on investigations into individuals exposed in the data leak.

Labour has also vowed to undo the privatisation of key industries undertaken by Margaret Thatcher, Conservative prime minister during the 1980s. Corbyn is committed to re-nationalising the energy, water, and rail sectors, as well as Royal Mail Plc. That could cost investors as the government may compensate stockholders on a book value basis rather than market value.

Virgin Trains, owned by billionaires Richard Branson and Brian Souter, has a UK rail franchise set to expire in the next six months, but the firm announced plans this year for a new service from 2021 between Liverpool and London.

Elsewhere, Labour plans to ask companies with more than 250 employees to direct 10 per cent of their equity shares to “inclusive-ownership funds” controlled by workers. And, the party has targeted property investors by embracing a policy to require them to sell homes to tenants at potentially below-market prices.

McDonnell sparked fears two years ago when he said the party was preparing for a possible run on the pound if it won power, raising the prospect of capital controls – restrictions on the movement of money – if Labour was elected. The shadow chancellor has since stressed that the party will not introduce such measures, but wealthy individuals have increasingly prepared to leave the UK, according to John Elder, founding partner of wealth advisory firm Family Office Advisors.


Over the past 18 months, some super-rich families Elder knows have opened bank accounts in Portugal, Monaco, Malta and other places that welcome the wealthy with low tax requirements and speedy citizenship approvals. Some have even run the numbers on using private aircraft firm NetJets to commute to the UK if they leave the nation.

The potential exodus by wealthy British citizens came into focus last year when it emerged Jim Ratcliffe, founder of global chemicals manufacturer Ineos AG and the UK’s richest person, was moving to Monaco along with two other billionaire Ineos directors. But it is not just Monaco and Switzerland vying for the UK’s richest exiles. Italy set up a flat annual tax of 100,000 euros (US$110,190) to lure wealthy foreigners two years ago. One notable beneficiary: soccer superstar Cristiano Ronaldo, who moved last year to Juventus Football Club in Turin.

“Many of our clients come from jurisdictions where there’s been far-left regimes, like Brazil,” said Davies. “They say we know what this is: they tax the rich and essentially give away their money. It always reminds me of one of one of Margaret Thatcher’s favourite quotes: the trouble with socialism is that eventually you run out of other people’s money.”

Newsletter

Related Articles

0:00
0:00
Close
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
National Health Service England and Trades Union Congress Finalize Agreement on Emergency Winter Staffing and Pay Frameworks
HM Treasury and Department for Business and Trade Announce Multi-Billion-Pound Sovereign Investment Pact to Spur Regional Advanced Manufacturing
Bank of England Governor Andrew Bailey Signals Potential for Faster Interest Rate Cuts as Domestic Inflation Pressures Ease Below Forecasts
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
×