A major shift that could reshape decisions for global residents, investors, and entrepreneurs
A new proposal emerging in the United Kingdom is adding momentum to a wider global trend. According to recent reports, the UK government is weighing a 20 percent “settling up charge” on certain gains embedded in assets held by individuals who leave the country. If adopted, it would represent one of the most significant changes to UK tax policy in a generation and could take effect as early as November 26.
At a press conference this week, Exchequer Chancellor Rachel Reeves signalled a tougher fiscal stance ahead of the upcoming Budget. While declining to rule out tax increases, she noted that weaker productivity forecasts could create a substantial gap in public finances. With income tax, VAT, and National Insurance protected by Labour’s election pledges, the focus has turned to wealth and capital.
What the proposed exit charge includes
The proposal would tax unrealized gains on assets such as shares and bonds when a person leaves the UK. It would apply to gains accrued while the individual was tax resident, echoing elements of the United States expatriation framework. Reports suggest the measure could raise approximately £2 billion per year.
At present, departing residents generally pay no UK tax on capital gains from non property assets once they leave. An exit charge would close that gap. Government officials are said to be considering options to defer payments over several years and to exempt gains accrued before a person became UK tax resident.
Why the proposal is raising concern
Critics warn the measure could accelerate departures of high net worth individuals already considering relocation. Marco Mesina, a tax attorney who advises internationally mobile clients, argues that the mere possibility of an exit charge creates uncertainty that pushes wealth abroad earlier. Similar outcomes have been observed in countries that introduced or expanded exit taxes, including the United States and Norway.
There is also concern that the proposal signals a broader shift in the UK’s identity. For decades, the country has been viewed as an international hub with predictable rules, competitive tax treatment, and an open stance toward globally mobile entrepreneurs. An exit charge would mark a clear break from that position.
A global trend governments are watching
This development follows similar debates across Europe. Earlier this month, France advanced a proposal that would require certain high earning citizens to continue paying domestic taxes for up to ten years after moving abroad. Several Nordic countries already apply extended taxation after departure. As public finances tighten, more governments are exploring ways to capture revenue from mobile wealth.
For globally minded investors, business owners, and executives, these discussions reinforce a common theme. The tax landscape is shifting, and long term planning now requires a broader strategy that considers both current residence and potential future exits.
What this means for international investors
While the UK has not yet made a final decision, the momentum behind policies targeting mobile wealth is growing. Investors who value clarity, stability, and a rules based approach are increasingly looking to jurisdictions that offer predictable tax systems and secure residency or citizenship options.
At Citizens International, we work with international families who want dependable long term structures for investment, mobility, and personal freedom. As governments introduce new measures that affect global residents, the value of establishing a foothold in stable and well governed jurisdictions continues to rise.
Set up a complimentary consultation with our team to discuss how these proposed changes in the UK may impact your long term plans and how a strategic second citizenship can support your global mobility and financial resilience.
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