Monday, September 23, 2024

London’s ‘wealth drain’

Today's Big Take is here.

Sept. 23, 2024

Aircraft takes off from London City Airport. Photographer: Jason Alden/Bloomberg

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Facing the prospect of higher taxes, some of the UK's wealthiest individuals say they are heading for the exit—if they haven't already left.

Moves once confined to whispers and rumors have recently burst into the open since the Labour Party came into power with promises to clamp down on preferential tax treatment for well-heeled foreign residents, private equity investments and private school fees.

While the impact and likelihood of a wave of departures are up for debate, hazard lights are flashing for the City of London. "People are just leaving," said Bassim Haidar, a Nigerian-Lebanese entrepreneur who is moving to Greece. "A brain drain is one thing, but a wealth drain is a completely different game."

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Illustration: John Provencher for Bloomberg Businessweek

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