The UK’s 2024 Autumn Budget, introduced by Chancellor Rachel Reeves, includes several tax and policy changes that could influence the movement of people in and out of the UK. John Mason International Movers, with over 140 years of experience in global relocations, understands the impact that tax policies and financial changes can have on relocation decisions. Below, we look at how these updates could affect inbound and outbound moving trends.
Increased National Insurance for Employers
A significant change in this budget is the increase in employer National Insurance (NI) contributions, which has risen from 13.8% to 15%, with a reduced earnings threshold of £5,000 per employee. This may lead to higher costs for UK businesses, particularly impacting small and medium-sized enterprises (SMEs) and employers of large workforces. These increased expenses might cause some companies to revise hiring or compensation structures, affecting the appeal of UK-based positions for international talent.
For companies deciding on new locations, the UK’s employer tax landscape may now weigh more heavily in considerations of whether to expand here versus in regions that offer lower operational costs.
Inheritance Tax Expansions to Include Pensions
The budget also broadens the inheritance tax (IHT) rules to include pensions, effective from 2027. Previously exempt from IHT, pensions will now be counted toward the total value of an estate, potentially increasing tax liabilities on pensions passed to heirs. This change could be relevant for those considering the UK as a destination for retirement or wealth management. Countries outside the UK with more favourable tax policies on pensions and inheritance may become more attractive options for retirees and high-net-worth individuals seeking tax-efficient ways to manage their estates.
Outbound Trends: Skilled Workers Exploring Opportunities Overseas
The UK has been experiencing a gradual rise in the number of professionals in healthcare, education, public safety, and other essential fields exploring career options abroad. Tax increases, combined with rising living costs, may prompt some skilled workers to seriously consider opportunities in regions that offer competitive salaries and more favourable work-life conditions.
Countries such as Australia and Canada are actively recruiting UK-trained professionals by offering competitive salaries, better work-life balance, and opportunities for career growth. For skilled workers and those seeking a new chapter, these destinations remain popular, especially with the financial incentives they provide compared to the UK.
Inbound Considerations: The UK’s Appeal for New Talent
While the UK has long been seen as an appealing destination for international professionals and investors, these recent tax changes may affect that standing. With broader inheritance tax rules and increased NI contributions, other global locations—such as Dubai and the United States—may offer more attractive conditions for both individuals and businesses. For example, Dubai’s tax-free salary structure has drawn a substantial number of skilled professionals, while the US remains attractive for its competitive salary packages and diverse job opportunities. For those looking to invest in UK property, these changes introduce new considerations, with potential benefits for first-time buyers but increased costs for landlords and buy-to-let investors. Learn more about what the Autumn 2024 Budget means for UK property investment.
These policy changes may particularly impact high-net-worth individuals and business professionals who may now look for more tax-efficient places to base themselves or expand their companies.
Planning Your Move with John Mason International Movers
Relocating, whether to or from the UK, is a major decision that is often influenced by financial and tax considerations. At John Mason International Movers, we provide expert guidance and personalised support to help clients navigate the complexities of relocation planning. Our team is here to ensure that moves are smooth, informed, and well-coordinated, no matter the destination.
As the UK’s tax policies evolve, we remain committed to assisting individuals, families, and businesses in making the right choices for their relocation needs. For more information or to discuss how these changes might affect your plans, please contact us directly.
To read more about what our business owner, Simon Hood, had to say about the budget’s impact, you can find his insights here.
