UK BUDGET 2025: A DRIVER FOR RELOCATION? 

November’s budget announcement offered little in the way of good news for high earners. Although we didn’t see the mooted change to headline tax rates, other details – threshold freezes, reductions in pension relief and changes to the treatment of dividends and capital gains – have left some professionals wondering if their next career move should be outside the UK. 

We’ve broken down the key changes emerging from the 2025 budget and looked at the options available for anyone looking to minimise the impact by relocating. 

WHAT’S CHANGED AS A RESULT OF THE 2025 BUDGET?

INCOME TAX AND NI

First, let’s look at what hasn’t changed: income tax thresholds. The Chancellor’s decision to freeze the existing brackets until the 2030-31 tax year rather than increase them in line with inflation creates fiscal drag. That means salary increases and bonuses are hit harder in real terms. 

Add in the personal allowance taper for incomes above £100,000, and many mid-to-senior professionals will feel poorer in real terms even as salaries rise. There’s also pressure on the employer’s side, as budgets that might otherwise fund pay rises or bonuses, which might at least offset the effect, are diverted to increased National Insurance contributions.

It’s also worth mentioning that VAT is now fully applied to school fees – a significant hit to the household budget for professional families with children in private education. 

PENSIONS

Pension relief for taxpayers in higher brackets has been reduced, so although pension contributions remain a tax-efficient use of income, the net benefit for top earners is lower than before. And for professionals taking home over £200,000, the tapered annual allowance limits the amount you can get tax relief on.

CGT

If you’re a professional receiving part of your compensation in shares or options, November’s increase in CGT – rising to 24% at the higher rate – will likely have an impact on your tax situation, especially for those outside Business Asset Disposal Relief parameters.

DIVIDENDS

A two percentage-point increase in the basic and higher rate taxes on dividends from April next year will affect professionals operating through personal service companies or holding investment portfolios, diminishing the tax efficiency of small-company structures.

A GROWING APPETITE TO RELOCATE?

Claims that large numbers of taxpayers are set to leave the country over the latest budget are nothing new – and tend to be exaggerated by certain sections of the media. But there’s some truth behind these types of reports. As Business Secretary Peter Kyle told Sky News shortly before the budget announcement, “some of the decisions” since his party entered government mean “some people feel the need to leave.” 

The data seems to back that up. Figures from the Office of National Statistics show 257,000 British nationals left the UK last year, compared with a previous estimate of 77,000. November’s budget might not be a reason to emigrate on its own, but it could be the final motivator for professionals who’ve had one eye on relocation for some time.

WHERE ARE UK PROFESSIONALS HEADED – AND WHY?

In our experience, while top talent can generally find a home anywhere, particularly those professionals specialising in in-demand and niche fields, there are a handful of destinations that feature on UK emigrants’ shortlists more often than not.

JERSEY AND GUERNSEY 

A flat 20% maximum personal income tax rate, no capital gains tax, no inheritance tax, and either no VAT (Guernsey) or 5% GST (Jersey) make the Channel Islands an attractive prospect – although housing constraints, local market size, and work permit considerations can complicate moves.

GIBRALTAR 

Gibraltar’s Highly Skilled HEPSS regime caps income tax at £39,940 on salaries up to £160,000, delivering predictability and savings. For UK citizens, there’s the added simplicity of no visa requirements, English legal system familiarity, and proximity to Europe.

UAE 

With 0% personal income tax and 0% CGT on local assets, the UAE remains a go-to destination for rapid net income uplift. Strong ecosystems in finance, consulting, tech, and healthcare, plus residency pathways via employment or investment, make it compelling for career growth.

USA

Depending on the state, total tax can be competitive for high earners, offset by higher gross salaries and deep opportunity sets in tech, biotech, finance, media, and professional services. The right visa pathway (e.g., L-1, H-1B, O-1) makes a big difference to outcomes.

RELOCATION CHECKLIST FOR PROFESSIONALS

• Create a 3 to 5-year model for your UK tax trajectory if you remain in the country, taking into account the factors described above.
• Compare the tax regimes and obligations in your desired locations, taking into account any double tax treaties that are relevant to your situation.
• Research how the timing of your exit/entry will affect tax residency in the UK and the target jurisdiction to avoid being penalised.
• Weigh up lifestyle costs such as schools, housing, and healthcare against any tax savings you’ll make as a result of a move.
• Identify sectors and geographies where your niche skills are in demand, and you’re likely to be able to secure visa sponsorship (if required).

CONSIDERING A MOVE IN THE NEAR FUTURE?

If the latest budget has given you pause for thought about where your future lies, you’re not alone. Many professionals we’ve spoken to are calculating the uplift they could achieve with a move to a more taxpayer-friendly jurisdiction – if the right role is available.

At Victus, we’re well-positioned to help specialist professionals plan this type of move and ensure a secure landing. With extensive networks and deep experience in some of the most sought-after locations for UK emigrants – the Channel Islands, UAE, Gibraltar, and the US – we can connect talent with niche roles before they hit the market. If you’re looking to make your next career move a cross-border one, speak to us in confidence to explore your options.