According to data obtained from the UK Revenue and Customs (HMRC) through the Freedom of Information Act (FOI) by the accounting firm UHY Hacker Young, a total of 69,300 taxpayers submitted P85 forms to HMRC to declare their departure from the UK during the 2025-2026 fiscal year.
Neela Chauhan of UHY Hacker Young told The Daily Telegraph in Britain that an increasing number of people believe they can receive more favorable tax treatment overseas. She mentioned this not only applies to business owners but also includes “ordinary workers who do not consider themselves part of the wealthy class.”
At the same time, there is a concern about the overseas mobility of young people. Official data shows that last year, there was a decrease of about 15,000 returning UK citizens aged 16 to 34. The Daily Telegraph reported that some young people may opt to stay abroad to avoid issues such as youth unemployment, wage levels, and housing costs in the UK.
The UK government has emphasized that creating wealth is a key policy objective and that the UK remains an attractive place for talent and investment, with a competitive and stable tax system, mature capital markets, world-class universities, and a highly skilled workforce.
The P85 form is a tax document used by UK taxpayers when leaving work or residence in the UK. Generally, individuals planning to be away from the UK for at least a full tax year and need to handle post-departure tax matters may be required to submit this form.
Former Chancellor Rachel Reeves raised the capital gains tax rate in the first budget of 2024 and announced that from April 2027, retirement pensions would be included in the inheritance tax scope. Additionally, the UK government abolished the long-standing non-domicile tax regime.
By 2025, the government further announced new property tax measures for residential properties valued at £2 million or more starting from 2028, and the personal income tax threshold will continue to be frozen until 2031.
The UK Office for Budget Responsibility (OBR) estimates that under these policies, the overall tax burden in the UK will reach record levels by the end of this decade.