Wealthy Britons moving abroad could soon face a new 20% tax on their business assets under proposals reportedly being considered by Chancellor Rachel Reeves.
According to reports, the Treasury is exploring a settling-up charge that would apply to individuals who relocate overseas, bringing the UK in line with other G7 countries and potentially raising up to £2 billion in additional revenue.
Currently, UK residents who become expatriates remain liable for capital gains tax on the sale of property and land worth more than £6,000 but are exempt from such taxes on other assets, including company shares.
Under the proposed measure, a 20% charge would be levied on the value of those assets when a person leaves the country.
A government source confirmed the Treasury is modelling several tax options ahead of the next budget but stressed that no final decisions have been made.
James Smith, research director at the Resolution Foundation, said the proposed levy aims to ensure those relocating to low-tax jurisdictions, such as Dubai, contribute fairly before selling off UK-based assets. However, he warned that advance notice of such a policy could trigger capital flight.
It was reported that the scheme could allow taxpayers to defer payment for several years and might be paired with a rule exempting pre-arrival investment gains from UK taxation ensuring what experts described as “fair and symmetrical” treatment.
