Recent changes to the UK's tax landscape are prompting many wealthy individuals and families to review their long-term plans and consider how best to structure their wealth for the future.
While moving overseas remains a significant decision and is certainly not suitable for everyone, the combination of recent reforms has led some individuals to reassess their current arrangements and seek advice on the options available to them.
Changes including the abolition of the non-dom regime, pensions becoming subject to inheritance tax from April 2027, and significant restrictions to Business Property Relief (BPR) and Agricultural Property Relief (APR) have all contributed to wider conversations around long-term wealth planning.
The combination of recent changes means many individuals are taking time to assess their options.
Moving overseas is a significant step and is never a decision based purely on tax. Family, lifestyle, business interests and personal circumstances will always play a major role. However, we are seeing more people wanting to understand their options and review their plans following a period of significant tax change.
For entrepreneurs and business owners, the discussion can be particularly complex. Many have spent years building businesses, taking financial risks and creating long-term value, and want to understand how best to protect their wealth for themselves and future generations.
Many entrepreneurs accept that taxation is part of running a successful business, but recent changes have led some to question the long-term impact on the wealth they have created.
After building a business, paying tax during their lifetime and investing significant time and effort, they want clarity around how their assets will be treated in the future and what this means for their families. Paying income tax, then capital gains tax on a sale, followed by inheritance tax on death or lifetime transfer, has become unpalatable for many.
While some countries offer different tax regimes, relocation involves much more than comparing headline tax rates. Individuals need to consider lifestyle, residency rules, family circumstances, business interests, investments, succession plans and wider financial objectives.
Leaving the UK can also bring its own tax implications, meaning professional advice is essential before making any significant decisions.
People are generally willing to pay their fair share of tax, but when rules change, it naturally leads them to review their position.
The important thing is not to make decisions based on headlines alone. Everyone’s circumstances are different, and any decisions around residency, business succession or wealth planning need to be carefully considered. The first question is always around lifestyle: what do they enjoy which would bring a good quality of life, and where in the world offers that lifestyle?
With further changes on the horizon, including inheritance tax changes affecting pensions from 2027, individuals and families are increasingly looking ahead and reviewing whether their current arrangements remain suitable.
For many, the focus is not simply about reducing tax, but making informed decisions that protect their family, support their future plans and provide long-term certainty.
If you are considering how recent tax changes could affect you, your business or your family’s long-term plans, it is important to seek advice early.
Our tax specialists work with individuals, families and business owners to review their circumstances, understand the impact of changing legislation and create a plan that supports their future goals.
To discuss your personal tax position, succession planning or wider wealth strategy, get in touch or contact your usual Duncan & Toplis adviser.
