The definition of 'High Net Worth Individual (HNWI)'
In the United Kingdom, a High Net Worth Individual (HNWI) is an individual who has self-certified that:
- They had, during the financial year immediately preceding the date in question, an annual income to the value of £100,000 or more; or
- They held, throughout the financial year immediately preceding the date in question, net assets to the value of £250,000 or more. Net assets for these purposes do not include:
- the property which is the individual’s primary residence or any loan secured on that residence;
- any rights of the individual under a qualifying contract of insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
- any benefits (in the form of pensions or otherwise) which are payable on the termination of the individual’s service or on their death or retirement and to which they are (or their dependents are), or may be, entitled.
Globally speaking, the largest number of HNWIs are found in the USA, though both Germany and Japan boast a higher proportion of the population that falls into this category. According to a report commissioned by Knight Frank, London is the city with the highest number of HNWIs as of December 2016, with New York in second place.