The UK reportedly plans to woo the ultra-rich back with a new 'golden visa.' Analysts say the damage may already be done.

Business Insider

5 days ago

The UK is reportedly considering reviving its "golden visa" plan to attract wealthy foreign investors as it faces the prospect of a record-breaking outflow of millionaires.
The proposed investor visa, which Bloomberg reported is under discussion by senior government ministers, would target high-net-worth individuals (HNWI) willing to invest in strategically important sectors such as artificial intelligence, clean energy, and biotech.
The UK Home Office declined to comment on any potential plans.
The move comes amid growing concerns that the UK's crackdown on tax perks for the wealthy — including the abolition of the non-dom regime in April — could drive a mass departure of wealthy residents and their capital.
An April analysis by the Centre for Economics and Business Research found that if half of former non-domiciled taxpayers left the country, the Treasury could face net losses of £2.4 billion ($3.26 billion) in the first year alone.
Until its repeal, the "non-dom" regime had allowed wealthy foreign nationals living in the UK to avoid paying UK tax on income earned abroad, making Britain especially attractive to global elites with international assets.
However, according to Henley & Partners' Private Wealth Migration Report 2025, Britain is projected to lose 16,500 millionaires this year alone, more than any other country on record, including China, in part due to tax changes.
It's a dramatic reversal for a nation once seen as a hub for global wealth.
'Much of the damage has already been done'
Analysts blamed rising taxes, political instability, and the end of the non-dom status for the departure of the ultrawealthy.
"There's no doubt a refreshed golden visa scheme could help slow the exodus and potentially lure some HNWIs back — but let's be clear: much of the damage has already been done," Nigel Green, CEO of global financial advisory giant deVere Group, told Business Insider.
"The UK's competitiveness in the global race for wealth has taken a significant hit in recent times, and trust doesn't return overnight," he said.
"Still, for those with long-standing business, personal, or cultural ties to Britain, it could be enough to start a conversation again. It's not a silver bullet, but it may be worth a shot."
Matthew Lesh, UK country manager at consultancy Freshwater Strategy, blamed what he called "the toxic mix of historically high taxes and the abolition of the non-dom regime."
He said it has "resulted in thousands of the world's wealthiest individuals fleeing" the UK, adding: "It's often forgotten that not only do the wealthiest have the widest shoulders, but also the longest legs."
According to the UK's National Audit Office, wealthy individuals paid £119 billion ($161 billion) in personal taxes in 2023-24, accounting for 25% of all UK personal tax receipts. The top 29,000 earners alone were responsible for £34 billion in income tax.
"A new 'golden visa' could be an attractive prospect for some of the world's wealthiest," Lesh continued, "but if they arrive to find themselves paying exorbitant taxes for poor public services and threatened by a new 'wealth tax,' they are unlikely to stick around for long."
A tarnished history
The UK's original Tier 1 investor visa, introduced in 2008, granted residency to foreigners who invested at least £1 million ($1.35 million). That threshold was raised to £2 million in 2014.
The route was scrapped in February 2022 amid mounting concerns over illicit finance and national security, especially after Russia's invasion of Ukraine.
A 2023 government review found that a minority of golden visa holders before 2015 were flagged as high risk, with some holders possibly linked to corruption or organized crime.
That history has left a bitter legacy.
In a letter to Chancellor Rachel Reeves this month, a coalition of anti-corruption groups warned that a new investor visa would "expose the UK to acute national security risks by facilitating foreign influence and the flow of illicit finance."
'Change the narrative'
Supporters argue that a new plan could be more tightly designed, and is urgently needed.
James Quarmby, head of private wealth at law firm Stephenson Harwood, told BI the government "can't afford to ignore the reality."
"When you've got a lot of people leaving, you've got two choices — either stop them by changing the rules that are driving them out, or attract new people in."
"An investment visa could change the narrative in the UK," he said. "Right now, the perception among wealth holders and their advisors is that the UK has become a hostile place for capital."
Quarmby said the visa should be bold and transparent, with meaningful incentives: "£2 million is too low. I'd recommend a £4 to £5 million minimum investment. But that must come with tax incentives."
"The government also needs to guarantee policy stability," he added. "People aren't going to relocate their lives and businesses to the UK only to have the rules change again in two years."
Green echoed that view: "The number one deterrent is uncertainty. Tax policy has become unpredictable, and for HNWIs, that's a dealbreaker. It's not just about rates — it's about tone, messaging, and direction of travel."
A political balancing act
The proposal puts the UK government in a tricky position. While the government faces intense fiscal pressure and limited room for big tax hikes, it must also appease a parliamentary base wary of any measures seen as overtly pro-wealth.
Quarmby predicts Labour will "quietly" pursue an investor visa under a different label.
"I doubt they'll call it a golden visa — it'll be something more palatable, like a 'Global Talent Visa' with an investment component. That way, it sounds more blue-collar."
Still, he sees the odds of action as high.
"There's at least a 60-40 chance this happens. The Treasury is running out of options. If you're out of blood to squeeze from the current tax base, you need new blood."
However, Green cautioned: "The UK used to be a magnet for global wealth — now it's often seen as a cautionary tale. Rebuilding trust will require sustained effort and meaningful reforms, not just a visa tweak."