New independent research commissioned by Handelsbanken Wealth & Asset Management reveals that 38% of SME business owners have either decided to leave or are considering leaving the UK. Of those weighing up a move almost two-thirds (65%) plan to do so within the next two years, signalling a potential wave of entrepreneurial emigration from the UK.
The study reveals three top catalysts for this shift: increased UK taxes such as national insurance and inheritance tax (IHT) (48.5%), better financial incentives in other countries, such as lower taxes and grants (48.5%) and rising costs associated with running businesses such as labour and supply chain costs. (46.5%).
Political uncertainty in the UK was also a prevalent concern amongst SME owners looking to jump ship, with over two-fifths (44.6%) citing it as one of their main reasons for considering a move. Additionally, over a quarter are simply looking to pursue other interests (25.7%), while just over a fifth (21.8%) are planning their retirement.
When asked about their preferred destinations for leaving the UK – results were mixed, with Spain (13%), The United States (12%) and France (9%) topping the list. Portugal (6%) and Dubai (6%) were among the next most popular choices, reflecting the fact that a host of countries are providing attractive alternatives to the UK. Post-pandemic, it is clear that many SME owners feel confident that they can run their businesses from outside of the UK.
Stephen Cowling, Acting Head of Wealth at Handelsbanken Wealth & Asset Management, commented:
“With taxes climbing and political stability in question, it is no surprise that more and more business owners will be assessing their options in terms of a potential move abroad – where there are some undeniably appealing financial incentives. Post-pandemic many respondents are clearly confident that they can run their business from outside the UK.”
“For business owners contemplating a move abroad – wherever the destination may be – the importance of planning and professional advice in navigating that change effectively cannot be overstated. It is also worth noting that the grass is not necessarily always greener on the other side. Anyone truly considering leaving the UK needs to be absolutely sure that it is the correct decision for them and their family. Dedicated professional advice can play an enormous role in reaching the most appropriate conclusion.”
