Wealthy UK-based families are increasingly considering the Channel Islands as a ‘near-shore, offshore’ option following the abolition of non-dom status, according to Rathbones’ Jersey and Guernsey offices.
New figures published by HMRC this week, the final release under the previous regime, showed that the number of non-domiciled and deemed domiciled taxpayers fell by 1% to 81,900 in 2024/25.
Their combined tax and National Insurance liabilities rose by 9% year on year to £13.6 billion.
Rathbones said the prospect of higher taxation and increased complexity was prompting some high net worth individuals to reconsider where they live and manage their financial affairs.
Research published by the firm earlier this year estimated that nearly 6,000 entrepreneurs left the UK between 2024 and 2026.
Rathbones Investment Management International, part of Rathbones Group, said tax was one of several factors being considered by internationally mobile families, alongside political stability, legal certainty, safety, education, healthcare and connectivity.
Marc Nightingale, Senior Investment Director in Jersey, said: “The latest non-dom statistics are a useful moment to take stock of how international wealth is moving, but they are not the full story. The end of the UK’s non-dom regime has sharpened conversations about mobility, but tax is only one part of the decision.
“Families are thinking more broadly about resilience, optionality and where they can build a secure base for themselves and the next generation. For some, that may be the Channel Islands; for others, it may be another international hub.”
Jersey is among a number of jurisdictions seeking to attract internationally mobile entrepreneurs, business owners and investors.
Applications under its High Value Residency programme are assessed on financial criteria as well as the economic and social contribution applicants are expected to make to the island.
Rob Broughton, Senior Investment Director in Jersey, said: “Clients expect a well-regulated international finance centre, but factors such as connectivity, schools, safety, lifestyle and access to professional services are also important.
“We are seeing entrepreneurs, business owners and investment professionals who want to remain internationally active while building a long-term base for their families. The decision is rarely about one factor; it is about how wealth, work, family and future plans fit together.”
Pictured: Marc Nightingale and Rob Broughton
