Wealthy UK families eye Channel Islands after non-dom tax overhaul
High-net-worth UK families are increasingly turning to the Channel Islands as a “near-shore, offshore” base following the abolition of non-domiciled status, according to figures from wealth manager Rathbones.
The shift comes as HMRC released its final batch of statistics under the previous regime, revealing a drop in the number of non-domiciled and deemed-domiciled taxpayers to 81,900 in the 2024/26 tax year. Despite the fall in overall numbers, combined tax and National Insurance liabilities rose by 9% year-on-year to £13.6bn, highlighting the heavy financial footprint of this group.
Rising tax pressures and added regulatory complexity are encouraging wealthy clients to re-evaluate where they base their personal and professional lives. Research conducted by Rathbones earlier this year found that almost 6,000 entrepreneurs opted to leave the UK between 2024 and 2026.
Rathbones Investment Management International noted that while tax efficiency remains a major factor, clients are placing growing emphasis on legal certainty, political stability, connectivity, and quality of life when structuring their affairs.
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Marc Nightingale, senior investment director in Jersey, pointed out that while the end of the UK’s non-dom regime has accelerated conversations around wealth mobility, tax is only part of the wider decision. He noted that families are seeking resilience and optionality, looking for a secure foundation for future generations—whether in the Channel Islands or other international wealth hubs.
Jersey, in particular, is positioning itself as a destination for entrepreneurs, business leaders, and investors through its High Value Residency programme. The scheme evaluates applicants on both their financial background and their broader economic and social contributions to the island.
Rob Broughton, senior investment director in Jersey, added that clients expect a well-regulated international finance centre alongside top-tier schools, safety, and access to professional services. He highlighted an increasing trend of business owners and investment professionals choosing the Channel Islands to maintain international activity while building a stable long-term base for their families.
