UBS Sees Family Office Shifts After UK Tax Changes
The UK recently replaced its previous remittance basis regime historically available to non-domiciled individuals. According to UBS executives, this has triggered some movement of family offices seeking an alternative base.
As of April 6 this year, the United Kingdom's new Foreign Income and Gains regime came into effect, replacing the previous regime that allowed non-UK domiciled individuals to be sheltered from taxation for 15 years. Under the new rules, individuals who become tax residents will have only a four-year period after which they will be subject to UK tax on their worldwide income and gains.
As expected, this would lead to some of the wealthy in the country to assess the possibility of choosing alternative bases. According to Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, there has been a «significant number of inquiries» from family offices after the change in British tax rules.
Preferred Destinations
Cavalli noted that a friendly tax environment was a major priority when selecting a hub of choice.
«We have seen clients moving to Switzerland, Monaco, Italy, to name a few, as well as the Middle East. Recently, I've met a client that was living in the UK that decided to make the Middle East his new home,» he shared during a media briefing in Hong Kong on the release of the bank’s annual family office report. «But there are also some that decided to stay [in the UK].»
Hong Kong’s IPO Rebound
In addition, LH Koh, head of UBS global family and institutional wealth APAC, also mentioned Hong Kong as a popular destination for the ultra-rich with the city announcing in 2023 that it would aim to attract 200 family offices by the end of 2025. Aside from connectivity to mainland China, most notably the 11-city cluster in the Greater Bay Area, he cited Hong Kong’s rebounding capital markets as a major advantage.
«If the IPO markets come back, Hong Kong will come back,» Koh remarked at the briefing.
Hong Kong listings have resulted in $7.7 billion in funds raised in 2025, making it the world’s leading venue for IPOs year-to-date, according to London Stock Exchange Group data. This included the largest IPO of the year by Chinese battery manufacturer CATL which raised $5.2 billion earlier this month.
