The Future of Global Mobility: Insights from London's Private Wealth Community

A roundtable discussion hosted by Coutts & Co and Isolas Gibraltar at 440 Strand

London's position as a hub for international high-net-worth families faces both challenges and opportunities, according to a gathering of leading private wealth advisors, bankers, and tax specialists. The intimate lunch, featuring perspectives from Lord Waldegrave of North Hill and The Hon Albert Isola CBE among others, revealed a nuanced picture of global mobility trends affecting the UK's wealthiest residents and the jurisdictions competing for their business.

London's Enduring Appeal

Despite concerns about the UK's tax regime, several factors continue to draw international families to London. Mehr Mann from Coutts highlighted an unexpected trend: ultra-high-net-worth Americans and Middle Eastern buyers actively acquiring prime London property, viewing it as "somewhat of a depressed asset" with attractive valuations. This commercial real estate activity, particularly in super-prime residential and commercial sectors, suggests continued confidence in London as a long-term investment destination. Coutts remains active in this space, providing substantial mortgages for International buyers, alongside investment-backed lending on portfolios managed by the bank.

The UK education system remains the nation's strongest card in attracting and retaining international wealth. Stuart Crippin, who heads Irwin Mitchell's Middle East practice, emphasized that "London still has this real conversation of prestige" among Gulf families. Education drives not just school placement but entire family relocations, with parents establishing UK footholds specifically to access British boarding schools and universities.

This educational pull proves remarkably resilient. Morag Ofili from Edwin Coe, drawing on her experience growing up in Saudi Arabia and recently working in Lagos, noted that even as prestigious schools like Rugby and Charterhouse open Nigerian campuses, families still prioritize "the UK experience" and the diverse global network it provides. "When you speak to parents out there, they want their kids to go to school with a diverse global network of people," she explained, highlighting that the cultural immersion cannot be replicated abroad.

The New Four-Year Window

A significant development for returning expatriates is the new Foreign Income and Gains (FIG) regime, offering four years of preferential tax treatment. This creates an opportunity for long-term UK expatriates—those who have been away for 10, 15, or even 20 complete tax years—to return home while benefiting from what Mann described as "potentially a very attractive regime" during that period. For families maintaining connections with children and grandchildren in the UK, this represents a compelling proposition that advisors expect to see more clients exploring.

Dubai Dominates Exit Flows

When UK residents do relocate, Dubai emerges as the clear destination leader across wealth bands. The UAE attracts not just ultra-high-net-worth individuals but increasingly high-net-worth families who "wouldn't have considered relocating" in the past, particularly those motivated by security concerns and quality-of-life factors. Crippin noted this extends beyond traditional wealth management to broader asset protection and intergenerational wealth transfer conversations, with Middle Eastern clients increasingly open to discussing diversified structures and passing assets to women—a shift in traditional practices.

However, banking relationships often remain London-based, with clients retaining UK / Jersey accounts while Coutts bankers service them in Dubai. Switzerland continues attracting the ultra-wealthy, while Italy gained significant traction until Milan reached capacity. Portugal, once popular, has seen its appeal diminish with recent tax changes.

Yet tax efficiency alone doesn't guarantee successful relocation. Ofili shared candid observations: some families return from the Middle East because "culturally it's not the right type of fit" for them or their families. Factors like lack of established networks, cultural adjustment challenges, and even accessibility for disabled family members—which she noted can be problematic in certain Gulf jurisdictions—influence these decisions. She urged advisors to consider family dynamics, spousal interests, and children's needs before recommending purely tax-driven moves. "Tax isn't everything," she emphasized, recounting clients who initially disliked Italy but later loved it once their social network developed. "Give it time, it takes time to make friends in a new location."

Emerging Markets and Changing Demographics

The discussion highlighted several interesting regional trends. Crippin revealed that Saudi Arabia's planned opening of its real estate market to non-Saudi individuals and entities from January represents "a really big change" that has clients "very excited" about investment opportunities. Meanwhile, Nigerian families are becoming more sophisticated in their understanding of UK tax structures, moving beyond simply "bringing in cash and working harder" to implementing proper wealth structuring using foundations and private trust companies—concepts relatively new to that market.

Gibraltar's Growing Profile

Albert Isola made a compelling case for Gibraltar as an often-overlooked option, particularly for British entrepreneurs. The jurisdiction's legislative framework mirrors UK standards, from trust law dating to 1893 to modern innovations like purpose trusts, private trust companies, and foundations. Isola explained that Gibraltar's 10-year legislative review successfully "plugged all the gaps" to compete with established jurisdictions. Foundations, initially created for civil law clients unfamiliar with trusts, have found unexpected popularity for family governance structures, allowing family members to join councils and participate in wealth management discussions.

Gibraltar's intimate scale—a population under 40,000—proves both advantage and challenge. Some embrace the close-knit community, while others struggle with the limited geography. However, for UK nationals seeking temporary tax efficiency before potentially returning home, Gibraltar offers "a seamless transition" in terms of legal systems, culture, and time zones. Many arrive planning short stays but become permanent residents.

Isola candidly addressed recent residency application freezes: the influx following UK-EU treaty announcements brought many applicants who weren't "contributing to the growth of the economy." The Chief Minister's colourful description—"freeloaders"—captured the government's determination to reset the system, with a two-month pause enabling new criteria focused on public interest and economic contribution.

The Inheritance Tax Barrier

Throughout the discussion, one issue dominated: inheritance tax. The 40% rate on death proved "eye-watering" for international clients and emerged as potentially "the single biggest" barrier to UK residence. The perception that "you're still going to come after me for 40%" even after death particularly rankles clients. Recent changes affecting business relief and agricultural relief compounded concerns, with families struggling to understand how they'll fund tax liabilities on illiquid business assets.

The challenge extends beyond the ultra-wealthy. One participant warned it's "very dangerous at the moment" for young professionals earning good wages but facing high marginal tax rates while receiving poor value for money. The combination of expensive housing, costly childcare, and substantial nursing home fees drives talented young families abroad—to the UAE for full-time care at competitive rates, or to Spain where "schooling and care are so much cheaper."

Cautious Optimism

Lord Waldegrave closed the discussion with characteristic perspective, acknowledging concerns while contextualizing Britain's institutional advantages; “a legal system that functions properly, banking infrastructure operating with transparency, and a revenue service free from obvious conflicts of interest.”

Drawing on historical perspective, he suggested Britain's tendency to "come up to a precipice and look over it" before taking corrective action—as in 1938 or 1978—offers hope. "There are strengths here, but we're going to have to put some of these things right," he concluded, expressing trust that the UK will find the impetus for reform, even if "it's inconvenient in the meantime."

The consensus: while global mobility pressures are real and accelerating, London's unique combination of education, professional services excellence, and cultural alignment keeps it firmly in the conversation for internationally mobile families. The question is whether policymakers will act before more decide the grass truly is greener elsewhere.

Attendees included representatives from Coutts, Isolas Gibraltar, Seddons, Irwin Mitchell, Radstock Partners, Edwin Coe, Norton Rose, Bindmans, Brebners, and Azets