London’s hospitality sector is reportedly feeling the impact of recent tax reforms, with some restaurant owners attributing falling bookings to the departure of high-net-worth individuals.
Industry figures say changes to non-domicile rules and inheritance tax (IHT) have encouraged wealthy residents to relocate abroad. As a result, associated spending — including corporate dining, family office activity and high-value client meetings — has declined.
Business owners argue that the economic “multiplier effect” is being underestimated, with not only ultra-high-net-worth individuals leaving but also other affluent residents who contribute significantly to local businesses.
The situation highlights how tax policy decisions can have wider consequences beyond direct tax receipts, affecting sectors such as hospitality, property and professional services.
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