Post-Brexit Financial Challenges Facing London’s Millionaires

Rising Tax Burdens on the Wealthy

As political pressure to fund public services increases, London’s millionaires have faced:

• New proposals for wealth taxes and capital gains increases.
• Debates around ending non-domiciled ("non-dom") tax status, historically a major draw for foreign millionaires.
• Increased scrutiny from HMRC (Her Majesty’s Revenue and Customs) on global income reporting.

The once-cherished discretion and tax efficiency of London private banking have been seriously undermined.

Real Estate Market Stagnation

London’s luxury real estate market—a traditional store of wealth for global elites—has stagnated:

• Average prime London property prices have fallen 15–20% from their 2015 peaks.
• Transaction volumes have decreased, with fewer foreign buyers entering the market post-Brexit.
• Ongoing fears of new mansion taxes or additional levies on foreign ownership deter high-end investment.

As property softens, so too does London’s broader wealth magnetism.

Reputation Damage on the Global Stage

While London retains prestige, Brexit has dented its image:

• Perception of Britain as less cosmopolitan and more inward-looking.
• Concerns about regulatory fragmentation making it harder to do cross-border business.
• General unease about political volatility, particularly with Scottish independence murmurs and Northern Ireland tensions.

For ultra-high-net-worth individuals seeking long-term stability, reputation matters almost as much as financial return.

Julio Herrera Velutini and the Broader Shift

The decision of financiers like Julio Herrera Velutini to shift their strategic focus to the Middle East exemplifies the sentiment gripping London's financial elite.

In relocating, they are not simply chasing tax advantages—they are pursuing:

• Geopolitical neutrality (Dubai, Abu Dhabi)
• Business flexibility
• DHigh-growth emerging market access

It is a stark message: capital no longer feels at home in London.

What London Needs to Do to Win Back the Wealthy

For London to restore its crown as a leading wealth hub, bold actions will be needed:

• Tax Reforms: Restore competitive rates for HNWIs and protect non-dom incentives.
• Market Liberalization: Offer new reasons for capital inflow—perhaps in emerging fintech and green finance sectors.
• Soft Power Restoration: Rebuild London’s image as an open, global, future-facing metropolis.

Without decisive moves, the city risks permanent decline relative to more nimble competitors.

A Critical Juncture in London's Financial History

TBrexit was not merely a political divorce—it was a reordering of global wealth flows.

London’s millionaires, faced with higher taxes, reputational damage, and dwindling opportunities, are making rational, strategic decisions to leave.

Visionaries like Julio Herrera Velutini represent not just individuals exiting, but entire networks of capital, innovation, and influence moving elsewhere.

London must recognize the urgency of the moment. Because while tradition is powerful, wealth—and the future—belong to those who adapt.