NEARLY six thousand business owners left the country in the past two years as concerns mount over the UK’s competitiveness, research shows.
Entrepreneurs have fled to more favourable tax environments with the greatest proportion coming from the tech sector, the study showed.
Wealthy individuals are leaving due to a punishing tax regime for business owners along with higher capital gains tax rates and the end of the non-dom status.
The analysis comes after Chancellor Rachel Reeves insists there is “more to do” after sluggish growth figures.
Filings from Companies House show 5,940 business owners left the country in the two years after January 2024 with only 3,182 coming here.
The most popular destination was the United Arab Emirates followed by Spain, America third with France and Portugal in the top five.
The research, from Rathbones, also showed 8,423 companies saw a business owner leave the country.
One in ten firms were in software which was three times the second place sector which was property development and then marketing.
Nearly half of firms, some 46 per cent, left London and 14 per cent were from the south-east.
Michelle White, from Rathbones Group said: “International mobility among business owners and wealth creators continues to accelerate.
“These findings show a clear shift in where UK entrepreneurs choose to base themselves.
“We are talking to more individuals and families – particularly younger business owners – considering relocation in search of better opportunities, more favourable tax environments, and more optimism about long-term growth prospects.
“While the UK remains a strong global centre, these trends highlight the importance of ensuring that our economy, talent pathways and tax system remain internationally competitive.”
A Treasury spokesperson said: “We’re doubling tax reliefs to make sure there is proper reward for business owners in the UK.”
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