What can expats expect from the upcoming UK budget?

14 Mar

As the UK prepares for its upcoming budget, expats around the world are keen to know what changes they can expect in relation to their finances. While there is no way to predict exactly what the budget will entail, there are several areas where expats could potentially see changes.

One area of interest for expats is taxation. The UK government may announce changes to tax rates and allowances, which could affect expats who receive income from the UK. For example, if the personal allowance is increased, this could mean that expats will pay less tax on their UK income. Conversely, if tax rates are increased, expats could see a higher tax bill.

Another area where expats could be affected is pensions. The UK government has made changes to pension rules in recent years, including the introduction of pension freedoms. The budget may include further changes to pensions, which could impact expats who have pensions in the UK.

It is expected that the chancellor will increase total amount workers can accumulate in their pension savings to £1.8m during their lifetime, up from £1.07m currently, before paying extra tax to try to persuade some of the the many people in their 50’s who took early retirement during the pandemic.

Brexit-related issues are also likely to be addressed in the budget. The UK's exit from the EU has already had an impact on expats, and the budget may provide further clarity on issues such as residency rights and healthcare access.

Finally, expats may also be interested in any changes to property taxes or stamp duty, as many expats own property in the UK. Any changes to these taxes could have a significant impact on the cost of buying or owning property in the UK.

Overall, while it is impossible to predict exactly what the UK budget will contain, expats can expect to see changes in areas such as taxation, pensions, and Brexit-related issues. It is important for expats to stay up to date with these changes and to seek professional advice if necessary to ensure that they are not caught out by any unexpected financial consequences.