Family offices stay rooted in London despite tax headwinds

Bloomberg last week reported that, despite the abolition of the non-dom regime and speculation about future wealth taxes, family offices are largely staying put in London. Out of 259 single-family offices in the UK, they reported that only one has relocated abroad with its principal. Even in that case, the principal, Nassef Sawiris, remains closely tied to the UK as the majority owner of Premier League club Aston Villa.

It is not difficult to see why family offices remain anchored in London. Unless regulated and actively trading capital, these structures are not designed to generate profits; rather, they serve as cost bases to manage accounting, administration and the broader oversight of family wealth. Their effectiveness depends largely on access to the right advisers and networks. London stands out as a unique hub where families can secure sophisticated legal advice on tax, structuring, succession and cross-border planning, complemented by specialist wealth managers and private banks. For international families, this concentration of expertise and sophistication, supported by a strong pool of local talent from which to recruit staff is difficult to replicate elsewhere. 

The reporting also reflects a broader reality: many clients hope that a more favourable regime may emerge in the future, perhaps after the current parliament. For now, while the political climate may prompt individuals to weigh alternative jurisdictions, London’s depth of expertise continues to anchor family offices.

This trend mirrors those noted in our previous thought piece on Gulf interest in prime London residential property. Indeed, despite political uncertainty and the introduction of the FIG regime, demand from families across the region remains strong and the parallels with family offices are clear. In both cases, the real drivers are not short-term tax changes but long-term fundamentals.

Whether in structuring wealth or acquiring property, London retains its position as a city of enduring appeal. Families may reconsider their residence or adapt the way they hold assets, but the expertise needed to manage, preserve and deploy wealth continues to draw them back.

At Boodle Hatfield, we are working with clients on structuring their wealth and positioning their families for the long term. The message from Bloomberg’s reporting is clear: London’s position as a hub for wealth management endures because the expertise required to preserve and structure wealth remains here.