Autumn Budget 2024: What the New Tax Policies Mean for the Movement of People to and from the UK

The 2024 Autumn Budget introduced by Chancellor Rachel Reeves has brought several changes that may shape the landscape of international relocation to and from the UK. John Mason International Movers, with decades of experience in facilitating international moves, examines how recent policy changes could influence decisions for those considering the UK as a destination—or departure point.

Increased National Insurance Contributions for Employers

One of the budget's key changes is the increase in employer National Insurance (NI) contributions, which has risen from 13.8% to 15% with a lower threshold of ￡5,000 per employee. This could mean higher operating costs for UK businesses, particularly impacting small and medium-sized enterprises (SMEs) and employers of large workforces. Businesses may need to adjust compensation structures or hiring practices to manage these new costs, which could affect the attractiveness of the UK for both businesses and skilled professionals considering relocation here.

Inheritance Tax Expansion to Include Pensions

The inclusion of pensions within the inheritance tax (IHT) scope, effective from 2027, means that pensions will now count towards the estate’s value, potentially leading to higher IHT liabilities. This could influence the financial planning of individuals, particularly retirees and those with significant pension savings who may now need to account for increased tax obligations when leaving an estate. For some, this may prompt consideration of alternative retirement destinations where pensions are more tax-advantaged.

Countries such as Portugal, Spain, and Italy provide pension-friendly policies that are attractive to retirees and high-net-worth individuals, making these locations increasingly popular for those seeking favourable tax treatment on retirement income.

Outward Movement of Skilled Professionals

Professionals in key UK sectors—such as healthcare, teaching, and engineering—have been exploring opportunities in destinations like Australia, Canada, and Dubai, where favourable employment packages, career opportunities, and quality of life incentives exist. The updated NI and IHT policies may amplify these considerations as certain international roles offer competitive salaries and attractive benefits compared to UK equivalents.

For example, Australia has an ongoing recruitment drive for healthcare and teaching professionals from the UK, offering salaries and working conditions that may appeal to those looking for a new chapter abroad.

UK’s Competitive Position for Attracting Global Talent

For international talent and investors, the budget’s NI and IHT changes create a new tax landscape in the UK. Global hubs such as Dubai, Ireland, and the Netherlands continue to provide tax structures that support competitive salary packages and corporate growth, making them attractive locations for skilled professionals and investors. With Dubai offering tax-free salaries and Ireland known for lower corporate tax rates, these regions could appeal to businesses and talent looking for international bases that provide more favourable financial environments.

Guidance and Services for an Evolving Landscape

John Mason International Movers remains committed to helping clients understand and navigate these changes. We provide tailored relocation services for those considering a move into or out of the UK, and our team is prepared to offer guidance on tax, employment, and relocation planning amid the new fiscal landscape. Whether clients are seeking opportunities abroad or moving to the UK, John Mason International is here to support every step of the journey.