UK worker departures hit record as 69,300 taxpayers file exit forms

Traders Union
All News
Business & Wealth
Billionaires
UK worker departures hit record

Highlights

HMRC data shows 69,300 taxpayers filed P85 exit forms in the 2025/26 tax year, a 32% rise from 52,000 the previous year.
Exits accelerated after the March 2024 move to end the non-dom regime, compounding pressures from higher Stamp Duty, VAT on private school fees, and increased Capital Gains and Inheritance Tax.
Professionals increasingly cite lifestyle factors and concerns over NHS and public services, with Spain and Switzerland popular destinations for UK workers leaving.

HMRC filings show sharp rise in exits

As reported by Fortune, citing The Telegraph, analysis of HMRC data by accountancy group UHY Hacker Young shows that around 69,300 taxpayers file P85 forms in the 2025/26 tax year, the paperwork used to notify the tax authority that they are leaving the UK permanently. That marks a 32% increase from 52,000 a year earlier, although the total number of departures is likely higher because some people who leave do not submit the form.

The increase adds to a broader pattern of outward migration from Britain that has also included wealthy residents. The article says one of the biggest shifts follows the March 2024 decision by the then Conservative government to end the non-dom regime, before power passed to the Labour party.

Higher Stamp Duty on rental properties, VAT on private school fees and increases in Capital Gains Tax, Inheritance Tax and employers’ National Insurance contributions also add to pressure on household finances.

Lifestyle and public services shape decisions

Career coach Natasha Stanley, head of coaching at Careershifters, says tax is not the main reason she hears from people planning to move abroad. She tells Fortune that she cannot think of a single client who leaves specifically for tax purposes, despite having helped thousands of people change careers and start over during more than a decade.

Instead, Stanley says many workers are drawn by lifestyle considerations such as more sunshine, a better work-life balance and relationships with partners from other countries. She also points to concern over the state of the NHS and a search for stronger public services elsewhere.

Spain and Switzerland are among the destinations she says professionals are choosing as they reconsider career paths and living standards. For some, the decision reflects fatigue with the pace and conditions of life in Britain rather than a narrow response to taxation alone.

We previously reported on the UK’s tighter inheritance tax regime for family-owned companies after the April 2024 reforms to business property relief. The changes, despite a higher threshold, were described by business groups as squeezing investment and hiring plans and potentially pushing more firms toward asset sales or private equity ownership. Our coverage also noted concerns that the policy could ultimately undermine growth and even reduce net public finances if delayed investment and unrealized jobs are taken into account.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.