British business owners are facing a mounting list of financial pressures: higher dividend taxes, frozen income tax thresholds, increased taxes on savings and rental income, and a rising cost of living that is making both companies and households more expensive to run. For a growing number of entrepreneurs, these changes are no longer just a frustration: they are now the catalyst for relocation.
Speaking about his decision to move to Abu Dhabi, assisted living business owner Sean Lambert says the UK’s current tax direction was the defining factor.
“The Government’s approach to taxation and spending sends a message that doesn’t reward growth or ambition,” Sean explains. “If my work can be done from anywhere, it makes sense to base myself somewhere that is more supportive of business.”
Read the full article at iNews: “Tax rises have forced me to move to Abu Dhabi - Britain is not fair anymore”
Sean is not alone in reconsidering his future in Britain. Companies House data shows that 6,100 directors with significant control moved their residence overseas in the past year, a 42% increase on the previous period.
For many founders, the shift to remote and location-independent working has removed one of the biggest barriers to leaving. “If Abu Dhabi doesn’t work out, there are plenty of other places we would try before returning to the UK,” Sean says.
Recent fiscal policy has played a central role in these relocation decisions.
The Autumn Budget introduced:
While these measures increase government revenue, business owners argue they also reduce incentives to grow companies and reinvest profits.
Alex Fenton, chief executive of an offshoring recruitment firm, The Legends Agency, says the cumulative effect is what matters. “You’re paying more for less,” he explains. “When you compare the cost of running a business and maintaining a good standard of living in the UK to other countries, the value proposition is deteriorating rapidly.”
Alex is now exploring a move from south-east London to Cape Town with his family, a decision driven by both lifestyle and economic considerations. “It’s become eye-wateringly expensive to live and operate a business in the UK,” he says. “This isn’t about avoiding tax, it’s about being in an environment where the overall equation makes sense.”
Beyond individual moves, there is a broader concern about what these trends mean for the UK’s long-term competitiveness. Many founders say they would prefer to remain in Britain, close to established networks, talent pools and customers, but feel the economic environment is becoming harder to justify.
For Alex, the issue comes down to incentives. “I don’t mind paying tax,” he says. “But there has to be a sense that the system understands how entrepreneurs are motivated and supports growth rather than making it more difficult.”
As global mobility increases and remote working becomes permanent, business owners have more choice than ever about where to live and operate. If the UK is seen as offering higher costs without corresponding advantages, more founders may decide to base themselves, and their future investments, elsewhere. For policymakers, the challenge will be balancing revenue-raising with maintaining the country’s appeal as a place to build and grow a business.
