Scott Kingsley, Senior Wealth Advisor
As promised in last month’s article, where we unpacked what might be on the table and why expats often feel Budget changes first, we’re now back with a clear, same-day breakdown of what was actually announced, and what it means for UK expats and internationally mobile professionals.
While today’s Budget doesn’t deliver a sweeping reform for overseas taxpayers, it does signal a continued shift in how the UK approaches cross-border taxation and internationally held wealth. The theme is clear: modernisation, simplification, and increased fairness in the treatment of mobile individuals and offshore structures.
And while that might sound like a red flag at first glance, it’s not necessarily bad news. In fact, many of the changes simply reinforce the importance of having a forward-thinking plan, one that reflects today’s rules, not last year’s assumptions.
If you missed the preview, it’s worth a read for context on how these changes have been building, and why it pays to stay one step ahead.
Now, let’s take a look at the key updates from today.
1. Offshore Anti-Avoidance Rules to Be Simplified and Reformed
The government has announced a wide-ranging review of the UK’s offshore anti-avoidance legislation, targeting income, gains, and structures held overseas by UK-connected individuals. The aim is to both simplify and strengthen the rules, with a call for evidence already underway.
2. New Tax Offer in Development for International Talent
A proposal is on the table to create a more competitive tax framework for high-skilled professionals relocating to the UK. It’s designed to support internationally mobile individuals in establishing themselves and their businesses, potentially echoing the benefits of the old “non-dom” regime but reimagined for today’s workforce.
3. Non-Resident Capital Gains Tax (NRCGT) Tightening
The Budget will amend NRCGT rules to close known loopholes and clarify definitions, particularly in relation to protected cell companies and indirect disposals.
4. Reforms for Former Non-Doms’ Trusts and Income
From April 2025, inheritance tax charges on trusts created by former non-domiciled individuals will be capped at £5 million. The “post-departure trade profits” exemption, used by some to shelter income, is also being closed from 2026.
5. Adjustments for Internationally Mobile Individuals
Additional measures have been proposed to refine how cross-border taxpayers are treated, especially around property and trust charges, in a bid to increase consistency.
6. Changes to Temporary Non-Residence Rules and Dividend Taxation
Going forward, dividends received during periods of temporary non-residence will be taxable in the UK. This ends the long-standing exemption that applied when individuals were abroad for fewer than five years.
7. Further Tweaks to Residence-Based Taxation
Minor adjustments are being made to the new residence-based system introduced earlier in the year, aimed at ensuring smoother application for individuals, trustees, and employers.
8. Overseas Workday Relief (OWR) to Be Capped
For new UK arrivals claiming OWR, only 30% of earnings may be excluded under PAYE going forward. This change is particularly relevant for international secondees and employers designing mobility packages.
Last month, we emphasised that while expats often feel these ripples first, especially in areas like currency exposure, frozen thresholds, and changing residence rules, it’s not about alarm, but alignment. That theme continues today.
Taken together, these changes don’t amount to a single, seismic shift, but they do underscore the importance of keeping your planning current.
Here’s how:
For long-term expats with trusts, passive investments, or historic arrangements held overseas, the key is no longer just compliance, but clarity. The simplification of rules may actually bring helpful transparency, but it does mean your structures should be reviewed in light of how HMRC views them today.
If you’re overseas temporarily, perhaps working abroad for a few years or taking a career break, you’ll want to check how the dividend and trade profit changes apply. This is particularly important if you plan to return to the UK within five years.
The Budget hints at new tax incentives for incoming high-talent professionals. While we don’t yet have specifics, the direction of travel suggests a more supportive regime for those looking to relocate to the UK for work or investment. If a return is on your radar, this could be a window worth preparing for.
If you hold UK property or company shares through offshore vehicles, the NRCGT changes may close existing planning routes. Again, this is not about alarm, but about being proactive. You may still have time to act before certain rules change, but only if you know how they affect your circumstances.
Changes to Workday Relief and residency rules mean global employers with UK-bound staff will want to update how they structure contracts and payroll. If you're an international executive or business owner, this could affect both how you’re taxed and how you compensate cross-border employees.
Looking ahead, expats who receive income from UK property, shares, or savings will want to take note of upcoming changes. While these won’t hit immediately, they are now officially in the pipeline, and they could alter the long-term value of your income streams.
From April 2026–2027:
These changes are likely to affect higher-income households most, but if you’re a non-resident landlord, hold UK company shares, or draw investment income from the UK, you may start to feel the effects sooner, especially if your portfolio hasn’t been reviewed recently.
It’s worth revisiting your cash flow assumptions, especially in retirement planning, and reviewing how your UK-based assets are structured. Sometimes even small tweaks can improve long-term tax efficiency.
What stands out in this year’s Budget is not so much a punitive tone, but a clear message: the UK is continuing to refine how it taxes internationally mobile people, and it wants to strike a balance between encouraging global talent and closing outdated loopholes.
For many expats, this is a reminder to ask a simple but powerful question:
“Does my financial plan still reflect the current rules, and my future intentions?”
That’s not always a yes. And that’s okay.
The key is to take stock, understand where you stand, and make adjustments that strengthen your position going forward.
Whether that means reviewing your trust, rethinking how you draw income while abroad, or exploring whether a return to the UK opens up new planning routes, now is a good time to do so.
Book in a consultation with me to go through how these changes impact your finances, personally.