A significant shift in the UK’s tax landscape is expected in May 2025, prompting an increasing number of high-income earners to consider relocating to jurisdictions with more favorable tax regimes—most notably, the United Arab Emirates (UAE).
Key Changes in the UK Tax Policy
Starting in May 2025, the UK government will implement a series of tax increases that are expected to affect high-net-worth individuals and business owners. These include:
- Up to 45% income tax
- 28% capital gains tax
- 40% inheritance tax on substantial estates
The upcoming changes are part of broader fiscal measures aimed at increasing public revenue, but they have also sparked a wave of concern among professionals and investors.
Why the UAE is Gaining Popularity?
In contrast to the rising tax burden in the UK, the UAE continues to attract global attention for its tax-friendly environment. The key advantages include:
- 0% personal income tax
- 0% capital gains and inheritance tax
- Low 9% corporate tax, applicable only to profits exceeding AED 375,000
- Full foreign ownership in designated free zones
- 5% VAT, significantly lower than the UK’s 20%
The UAE also offers long-term residency options such as the Golden Visa, which has made it easier for foreign professionals, investors, and business owners to establish themselves in the country.
Strategic Planning Ahead of Tax Policy Changes
As the May 2025 deadline approaches, financial planners and tax consultants are advising affected individuals to review their global tax strategy and residency plans. Early planning may help avoid exposure to new tax liabilities while ensuring compliance with international tax regulations.
Contact us today to secure your future before the May 2025 deadline.
