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England: Favorable tax rules for expatriates are abolished

England: Favorable tax rules for expatriates are abolished

People who are taxed under the current rules should review how the new rules will affect them. We hear that many are already planning to leave the UK. Those wishing to avoid falling under the transition rules must leave the UK before April 2025.

The proposed new FIG rules would mean UK tax exemption on foreign income for the first four years for new immigrants, comparable to five years of tax exemption for people moving to Spain, known as the Beckham Rules. An important point for people moving out of Sweden is that Sweden has the right to tax capital gains on securities for seven years from your departure.

New rules for inheritance tax will be particularly important to consider for those moving from Great Britain to Sweden. As there is no inheritance tax in Sweden, British inheritance tax rules apply in full. Changes to the inheritance tax have not yet been decided and are subject to change.

We are working closely with our colleagues in the UK to help our clients analyze how the new rules apply to their respective organisations. We recommend that those subject to the provisions immediately contact their advisors for assistance moving forward.

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