The latest guest on the FT Adviser podcast has said many internationally mobile high-net-worth families will not “naturally look to come back to the UK”.
According to Jeremy Harding, head of wealth management at Norman K. London, that was despite families re-evaluating security and safety against a volatile geopolitical situation.
Harding said clients were instead considering other jurisdictions to reside, including Italy, the Channel Islands, Monaco, Switzerland and Singapore.
He had “seen a net migration of wealthy families leaving the UK.”
“The UK still has a relatively punitive tax policy, particularly for international investors when it comes to buying real estate, getting a visa and investing in the UK,” he said.
However, London was potentially “missing a trick” in attracting wealthy families.
“London will always be a hub for wealth because of its financial ecosystem. We have fantastic banks, asset management, accounting, legal.”
Harding argued a “more accommodating tax regime” would allow London to capitalise on this advantage.
He suggested capping the amount of tax paid on an annual basis, as seen in Italy, so people know what they are paying and can make an informed decision.”
However, when it came to attracting international wealth back to the UK, Harding said: “Unfortunately, I think some of the damage has now been done.”
However, Harding agreed that conflict in the Middle East had led clients to re-evaluate the balance between tax policy, geopolitics and lifestyle in choosing where to live.
He added that considerations like education, healthcare and lifestyle were important.
Nonetheless, Harding said “tax policy remains the main reason for people taking the decision to move.”
hereward.mills@ft.com