Increase in Brits Leaving: UK Witnesses a Doubling in Expatriation Rates
In recent years, there has been a noticeable increase in the number of Brits choosing to emigrate, with Australia and the United States emerging as the second and third most sought-after destinations. This trend is largely driven by the UK's supply-starved housing market, financial struggles of the younger generation, and the aspiration for a better work-life balance, lower taxes, and better weather.
Data from HMRC shows that the number of P85 forms, submitted by UK taxpayers when they choose to live or work abroad, has accelerated dramatically in recent years. The average number of forms submitted per month rose from 2,500 in 2022 to as much as 5,150 per month in 2023. However, it's important to note that not all UK taxpayers are required to submit the P85 form, and some who file self-assessment returns may overlook this step.
The increase in P85 forms suggests an accelerating rate of departures from the UK, but it's likely that the actual rate and level of departures are higher than the data indicates. This is because not all Brits who emigrate may submit the P85 form, and some may choose to leave without informing HMRC.
Spain remains the top destination for British ex-pats, due in part to its appeal for remote work. David Sayce, the co-founder and managing director of Compare My Move, stated this in a recent report. Another popular destination is the United Arab Emirates, which offers zero income tax and favourable visa schemes like golden residence visas tied to property investment.
The trend of wealthy individuals moving abroad is a concern for the UK, as it raises questions about brain drain and the retention of its brightest and most ambitious citizens. However, official data from HMRC and the Office for National Statistics (ONS) for the 2023-2024 tax year estimate around 83,000 non-domiciled taxpayers in the UK, showing only a marginal 1% decline from the previous year. Although some private reports suggest a large-scale "brain drain", these figures are questioned by independent analysts and do not align well with official data.
A recent poll from the Adam Smith Institute found that more than one in four 18-30 year olds are either heavily considering leaving or already making plans to emigrate. This trend is particularly concerning, as it suggests that the younger generation is increasingly looking to start a new life abroad.
In conclusion, while there is a trend of Brits moving abroad, official data indicate the scale is currently moderate without strong evidence of a significant "brain drain" from the broader taxpayer population. However, the trend among the younger generation is a cause for concern, and efforts should be made to address the issues driving this trend, such as the housing market and financial struggles, to encourage talent to stay in the UK.
- The accelerating rate of Brits submitting P85 forms, coupled with the growing interest among young adults to emigrate, indicates a potential shift in education-and-self-development aspirations, possibly influenced by politics and general-news regarding the state of the UK's economy and quality of life.
- The United Arab Emirates, with its attractive zero income tax policy and favorable golden residence visas, could potentially draw Brits seeking better financial prospects, offering a prominent instance where politics and general-news (economic policies) intersect with education-and-self-development (pursuit of better financial stability).
