LONDON, 08 Oct. - (ANA) - The United Kingdom (UK) is experiencing an unprecedented exodus of high-earning athletes and entertainers, driven by taxation policies that are fundamentally reshaping the global landscape of sport and entertainment talent.

 

UK-US tax strategist Oriana Morrison, advisor to world-class figures including Anthony Joshua and FIFA World Cup talent reported that 100 per cent of her clients “have gone or are planning to leave if things don’t change.”

 

In an exclusive interview with Arabian Business, Morrison revealed that the massive departure represents what she describes as a “massive haemorrhage of income to the UK government” that threatens to permanently damage Britain’s status as a global hub for sporting and entertainment excellence.

 

 

The numbers behind the exodus

 

 

The financial incentives driving this migration is stark. Morrison breaks down the reality facing high earners: a boxer earning GBP1 million for a flight in the UK walks away with approximately GBP400,000 after income tax, national insurance and agent fees. The same fighter relocating to the UAE would retain GBP900,000 or more, benefitting from the emirate’s zero tax rate.

 

The scale of potential savings becomes even more dramatic at higher earning levels. Morrison cites the example of heavyweight champion Tyson Fury, who “could have saved GBP31 million in one year by just trading through a limited company instead of taking everything personally.”

 

Had Fury relocated to the United States with a similar structure, it is anticipated that he could have saved an additional GBP 2-10 million. In Saudi Arabia, that figure jumps to GBP75 million.

 

“These are not minor differences,” she explained. “This is legacy money.”

 

 

 

 

While the financial argument is clear, UAE-based legal experts say entertainers and athletes must also navigate complex residency and structuring rules to avoid continued UK tax exposure.

 

“When British entertainers or athletes move to Dubai, the first step is understanding how tax residence works. Leaving the United Kingdom does not automatically remove a person from its tax system,” Michael Kortbawi, Senior Partner and Co-Founder, BSA LAW told Arabian Business. “If they still have a home, family, or active work there, they can continue to be treated as UK tax resident. It is important to plan this transition carefully and document it well.”

 

The UAE’s appeal lies in its zero tax on personal income, but professionals earning through sponsorships, performances or image rights must ensure that business activity is genuinely run from the country, with evidence of local management, contracts, and banking.

 

“The most common mistake is believing that a move to Dubai automatically ends UK tax residency,” Kortbawi added.

 

 

 

       

The talent flight extends beyond sports personalities. Entrepreneurs across multiple sectors are seeking relocation, including jewellery brands, makeup companies and technology firms. The exodus encompasses not just established stars but emerging talent with future earning potential.

 

“It’s not just the people who made it, it’s the young people who know they’re going to make it that are leaving,” Morrison explained. “They are not incentivised to work hard; they are being punished for dreaming big. This is where the country is really going to feel the loss.”

 

The UAE, particularly Dubai and Abu Dhabi, has become the top destination of choice, followed by Saudi Arabia. The US remains another draw, especially Florida and Texas, which levy no state income tax.

 

Kortbawi confirmed that inquiries from British entertainers and athletes have increased significantly. “Over the past few years, we have received more inquiries from British entertainers and athletes who are considering a move to Dubai. Many of them see the UAE as a place where they can build a secure base for both their lifestyle and their work,” he said.

 

Sectors most represented include football, golf, boxing, tennis, motorsport, and, in entertainment, music producers and digital creators. Free zones such as Dubai Media City and Dubai Sports City are making relocation more practical with tailored licences and facilities.

 

The US offers the advantage of the world’s largest economy, expanded work opportunities, and cultural similarities with the UK, including shared language and business structures. The extension of Trump-era tax cuts through 2034 provides additional long-term certainty for relocating talent.

 

Morrison warned that continued talent haemorrhaging will fundamentally alter the UK’s cultural landscape. “We aren’t going to make superstars anymore,” she predicted. “Previously, the UK was a breeding ground for music, film, writing, and sporting talent. Those crops are going to be raised elsewhere.”

 

While acknowledging that UK authorities are aware of the trend, Morrison believes the response has been inadequate. “There’s too much focus on public optics ‘Look at how much this person made’ instead of asking, ‘What value are they creating here?’”

 

The economic barriers to artistic and athletic development have become prohibitively high. Rising costs for studio space, instruments, training facilities, and education are pricing out talent, particularly in music where “guitar-based and organic music has not dominated the charts for years” due to expensive recording real estate requirements.

 

“For the people who stay in the UK, they are going to be sadder, poorer, and less aspirational,” Morrison warned. “The things they love, music and sport, will become more inaccessible. They will have a reduced sense of meaning.”

 

Kortbawi argued that Britain could tighten rules further to stem “tax flight,” but in the meantime Dubai has become a permanent home rather than just a tax haven. “Dubai offers stability, safety, and clear legal frameworks, alongside lifestyle advantages. That combination is very hard to compete with,” he said.

 

The fundamental issue seems to be in the lack of perceived value for tax contributions. “Nobody is getting any value for money anymore when it comes to taxes. The worst level of public services ever. Who wants to pay more and more and more for nothing in return?”

 

Taxation is sits as a top deciding factor, ahead of lifestyle, sponsorship opportunities, or career prospects. “Taxation pays for safety. People feel that in the UAE. They don’t in the UK,” Morisson emphasised.

 

The UAE is actively building a comprehensive ecosystem to attract and retain global talent, attracting the “best base and best potential”.

 

This strategy extends beyond simple tax advantages to encompass infrastructure development and economic diversification. “The most successful cosmetic brands, designers, or entertainers are going to start coming from there, not the UK,” Morrison predicted.

 

The emirate’s approach recognises that high earners typically possess advanced education and entrepreneurial skills that create jobs and build economies. “Even if they have a lower population, the people they do have are excellent across the board, which ultimately benefits the economy,” she explained.

 

Experts believe that the UAE transition from a temporary tax haven to a permanent home for international talent, contingent on maintaining current incentives and continued infrastructure development. “If they have freedom of choice, if the streets remain safer there, people are going to want to raise their kids there.”

 

For the UK, the country faces losing its position as a global hub for boxing, football, and entertainment talent, with “entry-level steps on the career ladder for athletes and entertainers” gradually disappearing.

 

 

 

 

The trend reflects a global competition for human capital.

 

“The government needs to look at this as a competition. Because that’s what it is. The UAE, the US? They’re winning on talent attraction. We’re just taxing and shaming,” she said.

 

The implications extend beyond individual career decisions to encompass national competitive advantage, cultural influence, and long-term economic prosperity. As high-earning individuals continue to relocate, they take with them not only their direct economic contributions but also their capacity to generate employment, attract investment, and maintain the UK’s global cultural footprint.

 

The UAE’s clear residency rules, English-law governed free zones, and strong privacy protections are accelerating the shift. “Dubai has positioned itself as a global stage,” Kortbawi said. “The appeal is not only financial; it is also about quality of life, safety, and opportunity.”   - (ANA) -

 

AB/ANA/08 October 2025  - - -