Wealthy individuals in the UK are reportedly seeking alternative methods to access cash without divesting their businesses and shares, as the country experiences rising taxes and costs. The October Budget, under Andy Burnham's government, saw the lifetime limit on Business Asset Disposal Relief reduced to £500,000 and increased taxes on savings and property income.
These changes follow other financial pressures, including higher employer National Insurance since April 2025, a higher minimum wage, a business rates revaluation, and a tougher inheritance tax regime introduced this April. Borrowing costs have also increased, with the Bank of England raising rates to four per cent on 5 November, its first increase since 2023, in response to inflation driven by higher energy costs.
The abolition of the 200-year-old "non-domicile" status is widely reported to have led to departures and capital flight, with Henley & Partners estimating a net outflow of 16,500 millionaires from the UK in 2025. For those who remain, liquidity planning is becoming critical, as traditional lenders are reportedly tightening underwriting standards and capping loan sizes. Share-backed lending, or Lombard lending, is being considered as an option to raise funds against listed shares without triggering a sale and associated capital gains tax.