British Expats Could Suffer After UK's Latest Budget

By Editorial 31 March, 2014

Measures in the UK's recent Budget could be bad news for British expats, in particular those living outside the European Union.

UK Chancellor George Osborne announced that the Government is to revise income tax rules for non-residents who receive UK-source income. Currently, non-residents also benefit from the UK's tax-exempt income tax threshold of GBP10,000 on certain UK-source income, but this could soon change.

Osborne announced in the budget that plans are afoot, "to ensure the UK personal allowance remains well targeted."

He said: "The government intends to consult on whether and how the allowance could be restricted to UK residents and those living overseas who have strong economic connections in the UK, as is the case in many other countries, including most of the EU."

The UK would be restricted by EU law from making changes to disadvantage persons residing in other EU countries over those residing in the UK, but persons residing outside the EU who continue to receive income from the UK could be affected.

Other changes confirmed in the Budget, due to take effect from April next year, will bring expats who sell UK property into the capital gains tax net for the first time.

Tags: Tax | Law | Budget | United Kingdom | Expats | Europe | Other |


News Archive