Farewell, Britain: The Ultra-Wealthy Are Heading to Europe — But It Is 'Ordinary Pensioners' Who Are Truly Being Squeezed

The other day, an article caught my eye. It reported that hedge fund trader Chris Rokos is expected to leave the UK and move to Greece. Whereas in the past, Greece's wealthy elite used to move to London in droves, the opposite trend is now taking place. Under the Greek system, as in Italy, overseas income is exempt from domestic taxation for fifteen years. In Turkey, that preferential period is as long as twenty years. The UK's "four-year" figure suddenly seems rather meagre by comparison.

I am neither ultra-wealthy nor do I have any connection to hedge funds. I am simply a 66-year-old pensioner who has lived in the UK since 1989. At first, I thought this was a story from a distant world that had nothing to do with me.

However, after doing a little research, I realised that this story is also my own story. Today, I would like to write about the whole affair, whilst trying to avoid specialist jargon as much as possible.

1. The Figures Behind the 'Great Escape' Are Actually Rather Dubious

First of all, let me make a frank confession. When I began looking into this matter, I was on the verge of taking at face value the news that tens of thousands of wealthy individuals were fleeing the UK. However, when I traced the sources, the picture turned out to be quite different.

The Henley & Partners report, often cited as evidence for this "Great Escape," has been severely criticised by an organisation called the Tax Justice Network for lacking statistical backing and being little more than marketing material. It has also been pointed out that the figure reported in 2024 — that 9,500 wealthy individuals had left the UK — actually represented a mere 0.3 per cent of the UK's total wealthy population (approximately 3.06 million people). Even more surprisingly, Henley & Partners themselves stopped providing migration forecasts altogether in their 2026 report.

• Source: Henley & Partners, "Wealth Migration 2026"
• Source: Tax Justice Network, "Millionaire exodus did not occur, study reveals"

I could not help but smile wryly at the realisation that sensational figures tend to make the news just as readily, whether they concern health or investment matters. I usually spend my time fact-checking dubious health claims, and this situation followed exactly the same pattern.

That said, it is also true that real-life migration cases, such as that of Mr Rokos, have been reported. We need to distinguish between exaggerated aggregate figures and individual realities. So, what are the modest but steadily effective changes for ordinary pensioners like myself? Let us look at that next.

2. Why Did the UK Take Such Drastic Measures?

In April 2025, the UK abolished the "non-dom" regime, which had been in place for over two hundred years. As I have been a UK resident since 1989, I have never benefited from this regime myself, but for many people of foreign origin, it was a major pillar of tax planning.

	Old regime (non-dom)	New regime (FIG, from April 2025)
Eligibility	Residents whose permanent home was overseas	People who had not lived in the UK for the previous 10 years (new residents)
Overseas income	Tax-free for up to 15 years, provided it was not brought into the UK	Tax-free for the first four years only, even if brought into the UK
From year five onwards	Preferential treatment continued	Worldwide income becomes taxable
Inheritance tax	Overseas assets generally excluded	Worldwide assets taxable after 10 years' cumulative residence; liability continues for up to 10 years after leaving

Source: HMRC's official guidance, "HS266 Foreign income and gains (FIG) regime" (gov.uk)

Why has the government taken such drastic measures? Whilst there is likely more than one reason, two major factors appear to be at play. One is fiscal strain. With increased post-pandemic spending, the need to address soaring energy prices, and rising healthcare and welfare costs, the UK government was under pressure to secure revenue from somewhere. The other is political discontent over domestic inequality. Public scrutiny of the wealthy who enjoy UK public services whilst holding assets overseas has been intensifying for many years.

Compared to the long-term preferential treatment offered by Italy and Greece — fifteen years — and Turkey — twenty years — the UK's four years appears rather short. In other words, the preferential period is so brief that it may well expire before those who have moved from abroad have had time to sort out their assets and establish a new life.

Photo by Aron Visuals on Unsplash
An hourglass image, echoing how short that four-year window really is.

3. The Real Focus Was on Pensions

This was what surprised me most this time. In fact, the application of inheritance tax to pensions has a far greater impact on ordinary pensioners than the non-dom reform itself.

Until now, in the UK, any pension funds not fully withdrawn — balances in occupational or personal pension schemes — have been exempt from inheritance tax upon the holder's death. It was, in a sense, standard practice to leave pension accounts untouched and pass them on to children or grandchildren.

However, from April 2027, these pension balances will also be included in the calculation of inheritance tax. The UK inheritance tax system imposes a 40 per cent rate on amounts exceeding the tax-free allowance (£325,000), but this allowance has remained unchanged since 2009. With both the cost of living and property prices on the rise, whilst the allowance itself remains static, it is possible that even quite ordinary pensioners who simply own their own home and have a pension could find themselves liable for tax.

However, to ensure one is not swayed by alarming headlines, it is worth checking the official figures.

According to the UK Government's estimates, out of approximately 213,000 estates containing pension assets in 2027–28, around 10,500 will become newly liable for inheritance tax, representing approximately 1.5 per cent of the total number of UK deaths. Source: gov.uk, "Inheritance Tax — unused pension funds and death benefits" policy paper

Upon hearing "1.5 per cent," some may feel that this is less than expected. I, too, felt slightly reassured. However, this is a national average figure. Pensioners who own property in areas with high property prices, such as London or the South East, are far more likely to be affected than this average suggests. Here in the West Midlands, where I live, property prices in urban areas are by no means cheap.

4. Europe's Race to Attract the Wealthy

The countries frequently cited as potential destinations for those leaving the UK each offer tax incentive schemes with distinct characteristics.

Country	Main tax scheme	Key feature
Italy	Flat tax	Foreign income exempt above a flat €100,000 annual charge. Valid for up to 15 years
Greece	Flat tax + investment incentive	Flat €100,000 annual charge on foreign income (up to 15 years)
Turkey	Long-term relief + low inheritance tax	Foreign income relief for up to 20 years; low inheritance and gift tax
Switzerland	Lump-sum taxation	Tax liability based on living expenses rather than income
Monaco	Zero personal tax	Income tax, capital gains tax and inheritance tax are effectively zero

I would like to add a brief note regarding the "flat-rate taxation" mentioned here. Whilst tax usually increases in line with the amount of income, under this system, as long as a fixed annual amount (such as €100,000 a year in Italy or Greece) is paid, no further tax is levied, regardless of the actual amount of overseas income. In other words, the higher one's overseas income — even if it amounts to several million euros — the greater the benefit derived from this flat-rate system. This is why the scheme is described as one aimed at the ultra-wealthy.

As tax advisers point out, the choice of country of residence is not determined solely by low tax rates. Decisions are made by weighing three factors together: the duration of the preferential treatment, the transparency of inheritance and legal matters, and quality of life — including financial infrastructure and standards of healthcare and education.

Photo by Hugo Kruip on Unsplash
A stone cottage in the Cotswolds — a symbol of the kind of UK life many people are trying to protect.

5. Comparing Britain and Japan on Inheritance Tax

Let me now set this alongside the Japanese system.

	🇬🇧 UK	🇯🇵 Japan
Top inheritance tax rate	40%	55%
Relief on foreign income	First four years only, for new residents	Broadly, worldwide taxation from the start of residence (with limited exceptions for non-permanent residents' remittances)
Moving assets abroad	Worldwide assets taxable after 10 years' cumulative residence; liability continues for up to 10 years after leaving	Worldwide assets taxable if resident in Japan within the past 10 years; an exit tax also applies to unrealised gains
Reported popular destinations	Italy, Greece, Switzerland, etc.	Singapore, Dubai, Malaysia, etc.

What is interesting is that, whilst the period of preferential treatment on entry is shorter in the UK, the net of regulations on exit — relocation abroad and inheritance — is much finer in Japan. Japan's exit tax is a rather thorough system that even taxes unrealised capital gains on shares that have not yet been sold. Both countries, in their own way, are moving in the direction of closing the gaps that once allowed wealth to slip through untaxed.

I myself have maintained a base of life in both the UK and Japan ever since I moved to the UK in 1989 to work in a Japanese restaurant. When I compare the systems of the two countries side by side, a difference in the underlying philosophy emerges — one that cannot be seen through a simple comparison of high versus low tax rates. Japan tends to place greater emphasis on nationality and family ties than on place of residence, whilst the UK has now steered a more thorough course towards residence-based taxation. I do not believe this is a question of which is better or worse; rather, I feel it reflects what each country is seeking to protect.

Photo by Yuki Nakamura on Unsplash
Red autumn leaves, reminiscent of Japan — an image for setting the two countries' systems side by side.

6. How This Reaches the Ordinary Pensioner

The exodus of the ultra-wealthy makes the headlines. However, the impact on pensioners like ourselves manifests itself much more quietly and in a more understated manner.

Ripples through the property market. If sales of luxury properties in London's Mayfair or Kensington slow down, the resulting downward pressure will, with a time lag, extend to the wider surrounding housing market. Even if we do not directly buy or sell ultra-luxury properties, local property market conditions will gradually affect pensioners' asset valuations and future plans to move house.

The risk that "targeted" rules become "general" rules. Just as the inheritance tax exemption threshold has remained unchanged since 2009, a system intended to target only the ultra-wealthy may quietly broaden its scope as prices rise around a fixed line.

A shrinking multiplier effect. If spending by the wealthy on private banking, legal and tax advice, fine dining and cultural patronage decreases, this will in turn affect the associated employment and local economy — which eventually touches the public services pensioners rely on.

7. Where Does That Leave Me?

I will be honest. As I have lived in the UK continuously since 1989, I was never eligible for the new non-dom relief in the first place. If anything, as a UK "Long-Term Resident" (LTR), my worldwide assets are already subject to UK inheritance tax. Furthermore, as I spend time in Japan each season, I also face the risk of being assessed for place of residence and registered domicile under Japanese law. As I also own property in the Philippines, I effectively find myself watching the inheritance tax rules of three countries at once.

Until now, I had thought that consulting tax advisers in the UK and Japan separately would be sufficient. However, upon learning of the change extending inheritance tax to pensions, I realised with a jolt that this alone would not suffice. What I need is someone who is well versed in the systems of both the UK and Japan. I have not found one yet, but I intend to start looking before my next review. Perhaps this, too, is one form of "new encounter" that comes with reaching this stage of life.

8. Three Defensive Steps for the Retirement Generation

Even if we cannot move freely across borders like the ultra-wealthy, there is a good deal we pensioners can do.

First: begin diversifying assets and living arrangements early, even in small steps. If you entrust everything to a single country or a single system, you will bear the full brunt of the shock when that system changes. Diversification is not a privilege reserved solely for the ultra-wealthy.

Second: build relationships with professional advisers before an emergency arises. When it comes to inheritance and taxation issues, waiting until a problem actually arises before seeking out a specialist narrows your options considerably. It is well worth establishing connections with professionals qualified in both the UK and Japan, or with advisers well versed in the systems of both countries, whilst things are still calm.

Third: make a habit of checking, so "I did not know" never becomes the story. Systems change quietly over time. Making it a habit to check for updates to the tax and pension rules that affect you, even just once a year, may be your best line of defence.

9. An Action List to Start Today

• Write down the criteria used by each country or region to determine whether you are considered a resident (length of stay, address, location of economic interests, and so on)
• Calculate, even roughly, the estimated value of your estate and the anticipated tax liability in each relevant country
• Check whether a double taxation agreement exists between the UK and Japan, or between the UK and any other country relevant to you, and review its key provisions
• Check the latest rules regarding the obligation to declare overseas assets and overseas pensions
• Identify at least one potential adviser you could turn to, whilst you still have time

These procedures are costly and time-consuming. Nevertheless, I feel the reason to persevere lies less in the money itself and more in the wish not to burden the family I leave behind with unnecessary difficulties. There is a world of difference in the weight of the same anxiety between growing older whilst remaining unaware of changes to the system and growing older whilst having at least a rough grasp of the situation.

10. What Dividing a Rose Bush Taught Me

I grow David Austin roses in my garden in England. If a rose is left rooted in the same spot for decades, the plant can grow old and produce fewer flowers. Experienced gardeners divide the clump at the right time and replant the healthy parts in fresh soil. The secret to ensuring a long flowering life is, in fact, not becoming too attached to one spot.

The same may well apply to assets and places of residence. Leaving everything tied to a single country or a single system leaves you unable to move when that system changes. That said, for those of us who cannot cross borders as freely as the ultra-wealthy supposedly can, I believe what matters is the mindset of dividing things up sensibly enough that no single change catches us entirely off guard. This is a perspective I owe more to my own gardening than to any tax guide.

In Conclusion

Rather than offering words of encouragement, I simply hope that by putting these shared concerns into words, I can help ease someone's sense of isolation just a little. Systems are constantly changing, and there is no need to come up with the right answer straight away. However, I think it is worth bearing in mind that the hourglass has already been turned over.

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Related Reading

All You Need to Know About Inheritance Tax (IHT): Updated for 2025/26 & 2026/27 Tax Changes by Mr Karl Hartey (Paperback)

(As I have been unable to find any Japanese-language books covering this topic — the UK's inheritance tax on pensions and the 2027 reforms — at this time, I am, as an exception, recommending an English-language book.)

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