Increasing taxes, rising operating costs and financial incentives abroad top the list of reasons for jumping ship, the survey shows.

New research commissioned by Handelsbanken Wealth & Asset Management reveals that 38 per cent of small and medium sized enterprises (SME) business owners have either decided to leave or are considering leaving the UK.

The study was conducted by independent research company Pure Profile among a sample of 200 UK SME owners in March 2025.

Of those weighing up a move, sixty-five per cent plan to do so within the next two years, signalling a potential wave of entrepreneurial emigration from the UK, the survey reveals.

The study shows that three top catalysts for this shift: increased UK taxes such as National Insurance and inheritance tax (IHT) (48.5 per cent), better financial incentives in other countries, such as lower taxes and grants (48.5 per cent), and rising costs associated with running businesses such as labour and supply chain costs (46.5 per cent).

Political uncertainty in the UK was also a prevalent concern amongst SME owners seeking to jump ship, with 44.6 per cent citing it as one of their main reasons for considering a move. Additionally, over a quarter simply want to pursue other interests (25.7 per cent), while just over a fifth (21.8 per cent) are planning their retirement. 

When asked about their preferred destinations for leaving the UK, results were mixed, with Spain (13 per cent), the US (12 per cent) and France (9 per cent) topping the list. Portugal (6 per cent) and Dubai (6 per cent) 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 the UK, the firm said.

“With taxes climbing and political stability in question, it is not 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,” Stephen Cowling, acting head of wealth at Handelsbanken Wealth & Asset Management, said. “Post-pandemic many respondents are clearly confident that they can run their business from outside the UK.”

“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,” he added.

Handelsbanken Wealth & Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority (FCA), offers a range of wealth management services throughout the UK.

There have been a number of stories focused on an exodus of affluent people from the UK, concerned about rising taxes, a flatlining economy, crime, and other forces. For example, last October, the Adam Smith Institute, a UK think tank, produced a study examining the number of HNW people leaving the UK. 

The ASI report added to concerns that the UK has reached the upper limits of how high taxes, as a share of GDP, can go before they reduce, rather than raise, more money. The argument, sometimes known as “supply-side” economics, says that there is an optimum tax level between zero and 100 per cent, and that many major countries’ tax codes are beyond the ideal point. At issue are arguments about fairness versus economic growth and efficiency. 

At a time of greater capital and human mobility, jurisdictions such as the United Arab Emirates, Portugal, Malta, Switzerland, Singapore and Italy are competing to attract affluent people with a variety of schemes, including so-called “golden visas,” and various types of programmes offering residence/citizenship in return for investment. The ASI said that millionaires are leaving the UK for a number of reasons, including high levels of current taxation, threats of further increases, and a hostile culture towards wealth-creators.