UK considers 20 per cent exit tax on assets of wealthy emigrants

Mace | 1st November 2025 | Politics

The Treasury is preparing plans for a “settling-up charge” that would impose a 20 per cent capital gains tax on UK assets held by wealthy individuals leaving the country. The measure, expected to raise around £2 billion, would align the UK with other G7 nations’ exit-tax regimes.

The Treasury is drawing up plans for a new “settling-up charge” that would impose a 20 per cent capital gains tax on assets held by wealthy individuals who choose to leave the United Kingdom. The proposal, currently under review, would apply to people who retain shareholdings or other business interests after relocating abroad. It is intended to prevent individuals from avoiding tax by moving their residence before disposing of assets that have gained value while they were based in Britain. The measure is one of several options being considered by Chancellor Rachel Reeves as part of a wider reform of capital taxation ahead of the next Budget. According to Treasury modelling cited by The Times, the proposed levy could raise around £2 billion for the Exchequer. Officials believe the charge would bring the UK closer into line with other G7 countries, many of which already have exit taxes covering gains made before emigration. The policy would focus on assets such as company shares, real e...

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