The UK is experiencing a “far greater” exodus of wealth than it is attracting, despite reports of long-term expats and overseas investors purchasing prime London property, according to Utmost Wealth Solutions.

The insurance-based wealth solutions provider pointed to reports in the Financial Times that ‘opportunistic’ buyers from the UAE and UK expats were buying property in London.

Some high net worth (HNW) individuals were also looking to move back to the UK to take advantage of the new foreign income and gains (FIG) regime.

However, Utmost said the UK was seeing a greater exodus of wealth than it is attracting under the FIG regime.

“While some HNW expats may return home, this is far from the prevailing trend,” said Utmost Wealth Solutions global wealth specialist, Marc Acheson.

“Typically, the expats that are looking to return are those that are more elderly and wish and need to be nearer family.

“For this cohort, the new FIG regime is attractive as they have four years tax free on overseas income and gains and are inheritance tax (IHT) exempt for 10 years.

“Although recent data on the number of HNWs and non-doms that have already left the UK has come under scrutiny, the feeling on the ground is that vast amounts of wealth have already left and is leaving the UK.”

Utmost believed that the projections from the Office for Budget Responsibility that 25 per cent of non-doms with trusts would leave could be “conservative” and those leaving were “extremely wealthy”.

“With speculation mounting as to what further taxes the Chancellor may introduce at the autumn Budget to plug the fiscal hole, the UK’s reputation as a competitive and attractive jurisdiction for wealth will continue to be at risk,” Acheson stated.

“As a result, we are likely to see far more wealth exit the UK than arrive including UK domiciled individuals who can be exempt from IHT after 10 years of non-UK residency.”

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