The UK Autumn Budget: What Does This Mean for You?
The autumn budget is on the horizon now that we are well into August (it’s usually set for late October or early November). Financial experts, including independent advisers De Vere, have been warning expats in Europe and elsewhere that there may be changes coming which could affect them. Senior Wealth Adviser Oliver Wilcox warns:
“The government is under pressure to raise revenue, and capital is the next lever. That includes assets, income, and gains that still have a UK connection, even if the individual is based in Spain.”
From 2027, for example, pension funds will become part of inheritance tax. De Vere says the fiscal direction is clear, with the UK government now targeting capital such as property, investment portfolios and pensions. Wilcox warns that expats can expect tighter restrictions on their tax. A potential linking of capital gains tax with income tax bands could mean that those relying on asset sales for retirement income may face heavier taxation.
De Vere suggests people start looking at possible strategies now, rather than waiting. There might not be a ‘grace period’ after the budget, as any changes are likely to be implemented immediately. Wilcox says:
“The point isn’t panic. It’s preparation. If you haven’t reviewed your position since the last Budget—or worse, since you left the UK—then now is the time. Otherwise, you’re sitting on unknown exposure at exactly the wrong moment.”
He recommends that anyone with funds or assets still in the UK should seek cross-border financial advice now to limit exposure to more aggressive UK taxation. This may not be a wealth tax by name – but it could amount to one in practice.
EU Expats Avoid ‘Retirement Tax’
As of autumn 2024, according to the DWP, nearly half a million British expats in receipt of a state pension are living in the EU. Around 42,000 of them receive pensions above the current tax cap. However, because they are on the ‘old’ state pension, they are not forced to pay income tax — unlike many pensioners in the UK.
Expats Can Now Invest in the Saudi Stock Market
In Saudi Arabia, the Central Market Authority’s Chairman, Mohammed El-Kuwaiz, has announced recent changes to the system that allow residents of GCC states, including expats, to invest directly on the Saudi stock exchange. Investors will no longer need to go through licensed intermediaries. El-Kuwaiz says the initiative:
“—promotes the openness of the market internationally, while at the same time building a long-term investment relationship with wider segments of investors around the world, within the framework of a more flexible and attractive regulatory environment.”
As with many recent Saudi initiatives, this shift relates to Vision 2030, which aims to attract investors and global capital to the region while expanding markets. The nation’s financial authorities are seeking to develop and modernize Saudi investment funds. Fintech has been a major driver of this redevelopment, alongside stronger governance principles designed to prevent misuse.
Latest Survey Ranks London as ‘Most Expensive City’
ECA International’s new Cost of Living report places London ahead of Geneva this year, as revealed in early August. The survey covers 208 cities in 120 countries and is based on typical living expenses such as clothing, food, utilities and eating out. The top ten cities are:
- New York, USA
- Hong Kong
- London, UK
- Geneva, Switzerland
- Zurich, Switzerland
- Singapore
- San Francisco, USA
- Dubai
- Tel Aviv, Israel
- Bern, Switzerland
Head of product analytics at ECA, Steven Kilfedder, told the press:
“Beyond the annual movements, our five-year analysis reveals significant long-term shifts. The strong US dollar post-Covid has pushed up costs in US cities and dollar-pegged economies in the Middle East, making them more expensive for assignees. But this could be short lived if the dollar continues to weaken under Trump’s leadership. Meanwhile, cities like Tokyo have become much more affordable over the same period due to the weakness of the yen and relatively modest inflation as prices soared elsewhere.”
Expats Move Away from France
The number of Brits looking to relocate to France is decreasing, according to a recent report by the Daily Telegraph. France’s interior ministry reports that in 2024, an estimated 8,400 first-time residency cards were issued to British citizens — a decrease of around 10% from the previous year (9,339) and 24% compared to 2022 (11,174).
Expats told the Telegraph that although there are many positives to life in France, high levels of bureaucracy and punishing financial factors, such as capital gains tax, form a significant downside. Mortgage lending, says a retired American professor, proceeds with “extreme caution,” and with a chronic health condition he has found it difficult to secure further financing for his home (he intends to relocate to Britain).
Despite the decline, France remains popular with Brits looking to move abroad. The French national statistics agency Insee notes that Nouvelle-Aquitaine, Occitanie, and Île-de-France (which includes Paris) currently have around 78,000 British expats in residence.