The UK Chancellor, Jeremy Hunt, has proposed that starting from April 2025, new immigrants to the UK won’t have to pay any foreign income and gains tax during their first four years of residency. After four years, those continuing to reside in the UK will pay taxes under the same rules as other UK residents.

Hunt mentioned that the government will implement relevant transitional arrangements. For instance, there will be a two-year plan—corresponding policy measures will encourage individuals to bring wealth earned overseas back to the UK for spending and investment.

“This measure will attract approximately £15 billion of foreign income into the UK and generate over £1 billion in tax revenue.”

Hunt also mentioned that by the end of the forecast period, this proposal may raise £2.7 billion annually.

Claire Trott, Director at St. James’s Place, remarked that this proposal appears to be a “complex transition.” She added, “This policy is expected to bring in over £2.7 billion of additional tax revenue, which will be used to support other tax reduction measures announced in the budget.”