Super-rich flee London: the loss of millionaires second only to Moscow

HMRC halts phone and webchat self-assessment refunds

Due to an increase in "suspected fraudulent activity," HMRC (Her Majesty's Revenue and Customs) has decided to suspend self-service tax refunds via phone and online chat windows. All taxpayers wishing to apply for a self-service refund will now need to submit an overpayment claim either online or by post.

At the same time, HMRC stated that although suspected fraudulent activity has risen, their system remains "secure," and the suspension of phone and online chat self-service refunds is aimed at providing a safer service.

Recently, there has been a noticeable rise in complaints about HMRC’s customer support services. Taxpayers have reported that one-third of calls go unanswered, and written correspondence can take up to nine months to receive a reply. An assessment report published earlier this year revealed that HMRC answered only two-thirds of incoming calls — just half the volume compared to ten years ago. Calls with wait times exceeding 70 minutes are automatically disconnected.

However, HMRC’s Chief Executive, Jim Harra, disagrees with the negative reviews about their customer service. He stated, “Our service standards have significantly improved, with call waiting times reduced by 17 minutes since April last year.”

Super-rich flee London: the loss of millionaires second only to Moscow

A global annual wealth report has revealed that, in just 12 months, 11,300 millionaires chose to leave London, making it the city with the second-largest outflow of high-net-worth individuals globally, behind only Moscow, Russia. This figure includes 18 centi-millionaires (with net assets of $100 million or more, approximately £78 million) and two billionaires.

The survey defines wealth as “investable liquid assets,” including cash, bonds, and stocks, but excluding real estate.

The report cites several reasons for the decline in the number of wealthy individuals in the UK, including a series of tax increases under both the Conservative and Labour governments, the prolonged failure to recover from the 2008 financial crisis, post-Brexit economic uncertainty, and the continued depreciation of the pound.

Chancellor Rachel Reeves’ determination to abolish the non-domicile tax status has further accelerated the exodus of the wealthy. Under the new rules, all individuals who have resided in the UK for more than four years — regardless of their domicile status — will be required to pay UK tax on their global income and capital gains, ending the previous “remittance basis” system, which taxed only income and gains brought into the UK.

According to the Adam Smith Institute think tank, scrapping the non-dom tax status could cost the UK over £10 billion in economic growth per year, amounting to a total loss of £111 billion over the next decade.

New data shows that London is currently home to 215,700 millionaires, making it one of only two cities in the top 50 surveyed where the number of wealthy residents has declined compared to a decade ago (the other being Moscow). Overall, London’s wealthy population has fallen by 12% since 2014, while Moscow has seen a 25% decrease. Around 30,000 high-net-worth individuals have left London in the past decade, compared to about 10,000 from Moscow.

Despite the outflow of wealthy residents, London still ranks as the fourth most expensive city in the world, with property prices per square metre trailing only Hong Kong, New York, and Monaco, and surpassing every other country.

Historically, from the 1950s through to the early 21st century, the UK — and London in particular — had been one of the top destinations globally for millionaire migrants, attracting wealthy families from across Europe, Africa, Asia, and the Middle East.

UK economy grew more than expected in February

The latest data from the Office for National Statistics (ONS) shows that the UK economy performed better than expected in February, growing by 0.5%. Following the release of the data, the pound rose against the US dollar, climbing 0.4% within an hour to $1.3019.

According to data from the London Stock Exchange, analysts had previously forecast GDP growth of just 0.1%. Chancellor Rachel Reeves described the results as "encouraging," though she struck a cautious tone when referencing President Trump’s tariff storm and the market volatility over the past week.

The latest figures also show a significant improvement compared to the flat growth recorded in January. Year-on-year, GDP in February 2025 rose by 1.4%.

Ruth Gregory, Deputy Chief UK Economist at Capital Economics, also commented that the UK’s "surprisingly strong growth is likely to be short-lived, as US tariffs and domestic tax hikes will take a toll."

"The bigger picture is that the UK economy has only grown in four of the past nine months, and it’s hard to see a significant acceleration ahead," she added.

Hailey Low, Deputy Economist at the National Institute of Economic and Social Research (NIESR), noted, "Rising global uncertainty and escalating trade tensions mean the economic outlook remains highly uncertain. With President Trump’s tariff storm, the UK’s economic growth may slow even further this year."

This could pose fresh challenges for the Chancellor, who will face difficult decisions when she delivers the Autumn Budget later this year.